HomeMy WebLinkAbout03- City Manager's Office CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
From: Charles McNeely, City Manager Subject: Implementation of
recommendations of the Matrix
Dept: City Manager's Office Consulting Group's Management Study
of the Integrated Waste Management
Date: June 10, 2010 Division.
Council Date: June 15, 2010
Synopsis of Previous Council Action: ORIGINAL
Recommended Motion:
Discuss and take possible action regarding the Matrix Report; AND
Approve the Implementation Plan and direct staff to take all actions necessary for
implementation of the recommendations.
Signature
Contact person: Tanya Romo Phone: 909-384-5122
Supporting data attached: Staff Report, Matrix Consulting Group's Management Study
and Implementation Plan
Ward: All
FUNDING REQUIREMENTS: Amount: No financial impact to the general fund
Source:
Council Notes:
Agenda Item No. /
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Implementation of recommendations of the Matrix Consulting Group's Management Study of
the Integrated Waste Management Division.
Background:
In 2007, the City contracted with R3 Consultants to perform an operational analysis of the
Integrated Waste Management Division. This year, the City contracted with Matrix Consulting
Group to perform a management audit, a component of which was to determine the status of the
implementation of the recommendations of the R3 Report. The study involved a comprehensive
organization and management analysis of the IWM Division's operations, service levels,
management practices, and staffing levels. Matrix Consulting Group's final report identified 128
recommendations that incorporate the outstanding items detailed in the R3 Reports and identified
additional opportunities to enhance the efficiency and effectiveness of the Division.
The main focus areas of the Matrix analysis were to:
• Evaluate the organizational structure of the Division, including the division of
labor and managerial/supervisory spans of control.
• Analyze the staffing and service levels including, but not limited to, staff
assignments, workload, training, and the cost-effectiveness of service levels and
service delivery.
• Analyze the processes used by the Division to deliver services to its customers
including opportunities to streamline and enhance the management of these
processes.
• Analyze opportunities for increased revenues and cost saving measures.
In its analysis Matrix Consulting Group identified four major recommendations from the R3
Report that had been completed:
• Commercial Audit
• Customer Service Efficiency Plan
• Reimbursement from Water for collection services
• Reimbursement from EDA for collection services
In performing its analysis, Matrix Consulting Group conducted interviews with staff at all levels
of the IWM Division, which focused on goals and objectives, management systems, the use of
technology, the levels of service provided by the Division and the resources available to provide
those services. Matrix then compiled a comprehensive report which included a summary of the
1
128 recommendations for the IWM Division (See Attachment "I"). The objective of the
assessment was to, "Identify opportunities for improvement in the efficiency, effectiveness, and
service delivery of the Division (IWM) and opportunities for enhancing the quality of its product
and services." Staff has compiled the recommendations into an Implementation Plan (See
Attachment"2"). This implementation plan details specific start and completion dates along with
identifying the staff assigned with the responsibility to ensure accountability and full
implementation of the plan. Upon approval of the plan, staff will provide quarterly status reports
and updates to the Council of the progress in the implementation of the plan.
Financial Impact:
There will be no impact to the General Fund.
Recommendation:
Discuss and take possible action regarding the Matrix Report; Approve the Implementation Plan
and direct staff to take all actions necessary for implementation of the recommendations.
2
ATTACHMENT "1"
Management Study of the Integrated Waste
Management Division
CITY OF SAN BERNARDINO, CALIFORNIA
matrix &
consulting group
June 15, 2010
TABLE OF CONTENTS
1. INTRODUCTION AND EXECUTIVE SUMMARY 1
2. PROFILE 16
3. EVALUATION OF THE IMPLEMENTATION OF THE R3 CONSULTING GROUP REPORTS 31
4. DIAGNOSTIC APPRAISAL OF THE INTEGRATED WASTE MANAGEMENT DIVISION 48
5. ANALYSIS OF INTEGRATED WASTE MANAGEMENT DIVISION FINANCIAL POLICIES AND
PRACTICES 60
6. ANALYSIS OF CUSTOMER SERVICES 77
7. ANALYSIS OF SOLID WASTE COLLECTION 92
8. ANALYSIS OF RECYCLING 123
9. ANALYSIS OF ADMINISTRATION 139
APPENDIX 1 160
APPENDIX 2 172
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
1 . INTRODUCTION AND EXECUTIVE SUMMARY
This initial chapter of the report introduces the approaches utilized in this study
and summarizes key findings, conclusions and recommendations to be found in this
report.
1. INTRODUCTION TO THE REPORT
The Matrix Consulting Group was retained by the City of San Bernardino to
conduct a management study of the Integrated Waste Management Division. The study
involved a comprehensive organization and management analysis of the Division's
existing operations, service levels, management, and staffing levels. The analysis was
to be fact-based and include all aspects of service provision by the Division. The
aspects of this analysis are presented below.
• Evaluate the organizational structure of the Division, including the division of
labor and managerial / supervisory spans of control.
• Analyze the staffing and service levels including, but not limited to, staff
assignments, workload, training, and the cost-effectiveness of service levels and
service delivery.
• Analyze the processes used by the Division to deliver services to its customers
including opportunities to streamline and enhance the management of these
processes.
The approach of the Matrix Consulting Group in meeting this scope is portrayed
below.
• Develop an in-depth understanding of the key issues impacting the Division. The
Matrix Consulting Group conducted interviews with Division staff at all levels of
the Division. Interviews focused on goals and objectives, management systems,
the use of technology, the levels of service provided by the Division, the
resources available to provide those services, etc.
• Develop a profile of the Division. The Matrix Consulting Group conducted
interviews with Division staff and other key staff in the City to document the
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Management Study of the Integrated Waste Management Division
current organization of services, the structure and functions of the Division,
budgets, workload data, management systems, etc.
• Compare the Division's program and practices to 'best management practices'
and other cities.
• Evaluate the staffing, organization structure, and service levels in the Division.
This included interviews with key staff to develop an understanding of the current
service delivery model, evaluation of the adequacy of current service levels, work
practices, work planning and scheduling systems, productivity and staffing levels,
and the plan of organization.
The objective of this assessment was to identify opportunities for improvement in the
efficiency, effectiveness, and service delivery of the Division and opportunities for
enhancing the quality of its product and services.
2. THE INTEGRATED WASTE MANAGEMENT DIVISION EMPLOYS A NUMBER
OF BEST PRACTICES.
An organizational and management analysis by its nature focuses on
opportunities for improvement. However, there are a number of strengths in the
Division. Examples of these strengths are portrayed below.
• Residential trash, yard waste, and recycling is rollerted with automated side
loaders using 1-person crews.
• The Division uses a 4 / 10 work schedule for the collection of residential trash,
yard waste, and recycling.
• The Division has begun to convert commercial front loader trash collection to 1-
person crews for three of its twelve routes. Based upon a four-week sample in
June and July 2009, route C-4 used a 1-person crew for 92% of the collection
days Monday through Friday, route C-3 used a 1-person crew for 68% of the
collection days Monday through Friday, and route C-2 used a 1-person crew for
24% of the collection days Monday through Friday
• The productivity of the commercial front loader crews meets industry
benchmarks. Based upon a four-week sample, the median route size for
commercial front loaders was 128 containers.
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Management Study of the Integrated Waste Management Division
• The City meets the AB 939 requirements. Over the past ten years, the diversion
rate has increased from 44% to 54% in 2006 (the most current year information
is available from the State).
• Single stream recycling is used for collection of curbside residential recyclables
These strengths provide a sound basis for further enhancements.
3. KEY INITIATIVES
Based upon the evaluation of the Division, it is apparent that the Division faces a
number of challenges and significant opportunities for improvement. These
opportunities are portrayed below.
(1) Solid Waste Administration
The project team evaluated the adequacy of the administration and management
of the Integrated Waste Management Division. Overall, the key findings and conclusions
reached by the project team regarding the adequacy of administration for the Division
are presented below.
• Two functions that are funded within the Refuse Fund are organizationally
located outside the fund: street sweeping and right-of-way maintenance.
• Written policies and procedures regarding management controls, general
operations, collection work practices, etc. are not well documented.
• A formal skills assessment and training plan has been developed for each
employee in the Division.
• Few employees in the Division seem aware of the Division's Safety and
Procedures Manual or the Division's Injury and Illness Prevention Program
Manual.
• While the Division generates a "productivity' report on a weekly basis that
identifies the number of containers collected and tons collected per route for
each "line of business", some of the data contained within the "productivity"
report is incomplete or incorrect.
• While the Division contracted with the R3 Consulting to develop a business plan,
the business plan is largely unimplemented.
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Management Study of the Integrated Waste Management Division
• The span of control for the two (2) Residential Supervisors amounts to fourteen
(14) routes each.
• Employees have been denied their merit increases without an explanation from
their supervisor.
• The Division has not developed five-year financial plan.
• The Refuse Fund has not established an equipment replacement reserve.
• The City does not reimburse the Refuse Fund for solid waste collection services
received by the City.
• Solid waste collection and disposal rates are not empirically calculated and
updated on at least an annual basis.
•
The Division does not document its operating costs by line-of-business.
• The Division has not developed a fact-driven basis for maintaining in-house
delivery of solid waste collection services (versus outsourcing these services).
• The "franchise fee" charged to the Refuse Fund, while comparable to many other
cities in Riverside and San Bernardino counties, is also substantially less than
many of these other cities. In comparison to many of these other cities, the City
has been recovering a lower level of funding from the Refuse Fund.
(2) Customer Service
Customer Service handles a large volume of inbound refuse customer inquiry
calls, generates refuse collection bills for a small proportion of the City's refuse
customers, processes requests for service from new customers, etc. These inquiries
range from payment arrangements, billing inquiries, to low income and energy efficiency
program information. Overall, the key findings and conclusions reached by the project
team regarding the adequacy of Customer Services for the Division are presented
below.
• Utility billing is not administratively centralized to capture economies of scale.
The City operates two utility billing operations — one in the Water Department and
the other in the Integrated Waste Division.
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Management Study of the Integrated Waste Management Division
• Effective collection procedures have not been put in place.
• Customer Services does not effectively utilize the HTE utility billing software.
• The % of calls abandoned in 2009 amounted to 10.6%. This exceeds
benchmarks, and is not a responsive level of service.
• Customer Services receives a total of approximately 132 calls per day (excluding
abandoned calls).
• The Division serves approximately 43,500 residential customers and 3,500
commercial customers. However, approximately 83% of these customers are
served by the Water Department's Customer Service Representatives. The
remainder are served by the Division's Customer Service Representatives. The
level of accounts per Customer Service Representative in the Division does not
meet benchmarks; in other words, the staffing exceeds workload requirements.
(3) Solid Waste Collection
Collection of solid Waste and recyclabies represents the single largest
percentage of the City's solid waste management budget. The City has deployed a
number of measures to enhance the efficient collection of solid waste such as
automated side loaders for residential solid waste collection, but a number of other
challenges remain. The key findings and conclusions reached by the project team
regarding the adequacy of solid waste collection services for the Division are presented
below.
• The residential and commercial routes suffer from significant imbalances in the
number of containers collected per route and the tonnage collected per route.
• The Division does not use electronic routing software.
• One third of the automated side loader fleet exceeds the replacement cycle. Only
two 2009 automated side loaders are in the fleet and only one 2008 automated
side loader.
• The spare ratio for automated side loaders is 36%, which exceeds the
benchmark of 20% to 25%.
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Management Study of the Integrated Waste Management Division
• The route sizes for residential trash, yard waste, and recycling collection are
lower than benchmarks would suggest as appropriate. The route size of
residential trash, yard waste, and recycling collection should be 875 to 1,125
containers for a 10-hour workday. The median for these routes ranges from 638
(yard waste) to 793 (trash) based upon a four (4) week sample. There is
significant unused capacity amounting to approximately 26% for residential trash,
33% for residential recycling, and 56% for residential green waste.
• 9 of the 12 commercial front loader routes are collected using 2-person crews.
The use of 1-person crews is a common practice in solid waste collection.
• 57% of the commercial front loader fleet exceeds the replacement cycle. Only
nine commercial front loaders are in the fleet with an age less than 7 years.
• The spare ratio for automated side loaders is 75%, which exceeds the
benchmark of 20% to 25%.
• The median number of commercial roll off containers collected per route was five
(5) based upon a four (4) week sample. There is significant unused capacity
amounting to 29% to 33%.
• The commercial roll off crews travel to each container site twice: once to collect
the container to take the container to the landfill, and the second time to bring the
empty container back to the site. The crews do not use the four-way "switchout"
method.
• 15% of the commercial roll off trucks exceeds the replacement cycle.
• The spare ratio for commercial roll off trucks is 86%, which exceeds the
benchmark of 20% to 25%.
• In some instances, the tonnage collected by commercial front loaders exceeds
legal limits. In some instances, this results from operators not collecting this
tonnage in 2 loads. This is a particular problem for route C-1.
• The vehicle availability for the commercial roll off fleet approximates 60%. The
vehicle availability for the automated side loader fleet approximates 70% to 75%.
(4) Recycling
The managers of successful solid waste collection and disposal recognize that all
aspects of their programs are designed around recycling, not trash. The key findings
and conclusions reached by the project team regarding the adequacy of recycling
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Management Study of the Integrated Waste Management Division
services for the Division are presented below.
• The Division does not have the right mix of staff for its recycling program. The
Division has experienced difficulty in filling positions within the program, and has
not been able to attract qualified employees for its entry-level positions.
• Based upon a sample in July 2009 of three collection vehicles, the contamination
rate for recycled materials was 24.5%.
• The City has not yet adopted a construction and demolition debris recycling
ordinance.
The Division has not yet developed effective education programs for businesses
and residents.
• The Division does not provide on-site waste assessments and technical
assistance for businesses.
• The Division does not provide recycling services for multi-family dwellings, and
its recycling services for businesses are limited.
4. SUMMARY OF RECOMMENDATIONS.
The table on the following page presents a summary of the recommendations
contained within the report.
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SUMMARY OF RECOMMENDATIONS
# Recommendation Page#
Chapter 3 -Evaluation of the Implementation of the R3 Consulting Group Reports
1 The Integrated Waste Management Division Manager should develop a plan of 31
implementation for the Collection Operations Review for the review and approval of the
Public Services Director.
2 The Integrated Waste Management Division Manager should include within the plan of 31
implementation the recommendation, the manager or supervisor responsible for
implementation of the recommendation,the priority of the recommendation,the time
frame for start and finish of the implementation, and the costs associated with
im lementation.
3 The Integrated Waste Management Division Manager should work with his I her 31
management and supervisory team in the development of the plan of implementation.
4 Some of the recommendations contained in the Collection Operations Review should 31
not be implemented. This includes recommendation#6—to transition to a 5-day, 8-
hour per day collection schedule for residential refuse collection, recommendation#6 -
to implement multiple commodity collection routes, recommendation#2-to consider
staffing an Assistant Manager,two additional Route Supervisors, and a Customer
Service Representative, and recommendation#1 -to use the Inland Valley Transfer
Station and not the Mid-Valley Landfill in Rialto.
5 The Integrated Waste Management Division Manager should develop a plan of 36
implementation for the Business Plan for the review and approval of the Public
Services Director.
6 The Integrated Waste Management Division Manager should include within the plan of 36
implementation the recommendation,the manager or supervisor responsible for
implementation of the recommendation, the priority of the recommendation, the time
frame for start and finish of the implementation, and the costs associated with
implementation.
7 The Integrated Waste Management Division Manager should work with his I her 36
manaclement and supervisory team in the development of the plan of implementation.
8 Some of the recommendations contained in the Business Plan should not be 36
implemented. This includes the recommendations to purchase an Integrated Customer
Information System for the residential, commercial, and temporary services, to increase
the number of authorized positions within the Integrated Waste Management Division,
to re-balance residential routes based upon an 8-hour work day, 5 days of collection,to
begin a feasibility study for a Corporation Yard I MRF I Transfer Station, and to
incorporate the cost within the budget to implement aggressive public outreach
ro rams and enforcement.
Chapter 5-Analysis of Integrated Waste Management Division Financial Policies
and Practices
9 The Integrated Waste Management Division should prepare a five-year financial plan in 60
calendar ear 2010.
10 The five-year financial plan for the Integrated Waste Management Division should be 60
resented to the City Council for its consideration and adoption.
11 The Administrative Analyst II assigned to the Public Services Department should be 60
assigned responsibility for the preparation of this five-year financial plan.
12 The Integrated Waste Management Division should develop financial policies to guide 62
the development of the five-year financial plan.These financial policies should be
develo ed durin 2010.
13 The Integrated Waste Management Division should develop these financial policies in 62
consultation with the Finance Department.
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# Recommendation Page#
14 These financial policies should be developed in concert with the development of the 62
five- ear financial plan.
15 These financial policies should include such aspects as balancing revenues and 62
expenditures, long-range planning, asset management(the fleet and containers),
revenue, and expenditures.
16 The Integrated Waste Management Division should separate its revenues and 64
expenditures in the Division's budget based on the primary services provided by the
Division. This should include residential trash, yard waste, and recycling collection;
uncontained or bulk collection; recycling operation; commercial front-loader trash and
recycling collection; commercial roll-off collection; street sweeping; and right-of-way
services.
17 The Integrated Waste Management Division should continue to use debt financing until 66
the Refuse Fund reserves are sufficient to enable the development of an equipment
re lacement fund.
18 The Finance Department should conduct a cost of service study for solid waste 70
collection services in fiscal year 2010-11.
19 The Finance Department should update the cost of service study for solid waste 70
collection services annually.
20 The City should authorize an Accountant I for the Finance Department to develop and 70
update the cost of service study and provide other financial support to the Integrated
Waste Manage ent Division.
21 The Integrated Waste Management Division should conduct route audits of its 72
commercial and residential customers.
22 The contractor should develop a master refuse collection electronic database, which 72
should be referenced for customer container counts in the field.The database should
ultimately generate a GIS database of refuse collection points tied to parcels.
23 The contractor should collect GPS coordinates for each customer container to be 72
spatially coined to the prospective refuse collection points in the electronic database.
24 The contractor should develop an accurate, verifiable, and transparent"Update 72
Procedure"methodology for the master solid waste collection electronic database that
the Ci can use in the future to update the waste setout database.
25 On an annual basis, the Division should conduct billing and route audits for commercial 72
and residential customers to maintain accurate data regarding its customer base.
Audits to the residential solid waste services should include information such as total
number of customers, and number of containers. For commercial services,the audits
should include total number of customers, number of containers, size of containers,
and frequency of collection.
26 The City should reimburse the Refuse Fund for the collection of solid waste from City 75
facilities.
Chapter 6-Analysis of Customer Services
27 The Water Department and the Integrated Waste Management Division should develop 77
a service level agreement for the provision of billing and collection services by the
Water De artment on behalf of the Integrated Waste Management Division.
28 The Integrated Waste Management Division should "contract"with the Water 79
Department for all of its residential and commercial billing and collection.
29 The Integrated Waste Division should eliminate the Integrated Waste Customer Service 79
Supervisor position, two Lead Customer Service Representative positions, five
Customer Service Representative positions, and two temporary Customer Service
Representative positions.
30 The Integrated Waste Management Division should develop,deploy and promote 82
alternate payment options by its customers to include auto withdrawals, internet
payment, use of Interactive Voice Response telephony, and the like.
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Management Study of the Integrated Waste Management Division
# Recommendation Page#
31 The Integrated Waste Management Division should offer incentives for automatic 82
payment such as waiving a security deposit in exchange for choosing automatic bank
drafting. Offering such an incentive could help customers automatically pay their utility
bill on time, and therefore reduce the likelihood of delinquencies or bad debt
accumulation.
32 The Administrative Analyst II should develop a plan to deploy and promote alternate 82
a meet options.
33 The Integrated Waste Management Division should implement a formal credit check 84
program for new customers. The Administrative Analyst II should develop and deploy
the orogram. and train the Customer Service Representatives in its use.
34 The Integrated Waste Management Division should require a security deposit for those 84
customers with a bad credit score or a bad credit history at another utility.
35 The Administrative Analyst II should develop a plan to deploy a formal credit check 84
program for new customers.
36 The Integrated Waste Management Division should require a deposit for all customers 85
who do not own their property.
37 As another alternative, the Division could require that all collection service be 85
established in the name of the property owner, and hold the property owner
accountable for payment of the collection service, should the tenant fail to pay.
38 The Administrative Analyst II should develop a plan to deploy a deposit system for 85
customers that do not own their property or a policy that would hold the property owner
accountable for payment of the collection service,should the tenant fail to pay.
39 The Integrated Waste Division should charge a fee for reconnection of customers after 86
disconnection for failure to pay.
40 The Administrative Analyst II should proposal for consideration of the City Council to 86
establish a fee for reconnection of customers after disconnection for failure to pay.
41 The Integrated Waste Management Division should use all of the tools available to 87
collect bad debt including liens, a collection agency, and the State Franchise Tax
Board.
42 The Administrative Analyst II should work with the Finance Department to develop and 87
deploy a full set of tools to collect bad debt including liens, a collection agency, and the
State Franchise Tax Board.
43 The Integrated Waste Management Division should develop and use two performance 88
measures to evaluate its own effectiveness in bad debt collection: days sales
outstanding and bad debt ratio.
44 The Administrative Analyst II should develop two performance measures to evaluate its 88
own effectiveness in bad debt collection: days sales outstanding and bad debt ratio
including the calculation of these measures for fiscal year 2008-09 and future fiscal
ears.
45 The Integrated Waste Division should continue to utilize the H.T.E. utility billing module 88
for residential and commercial refuse billing and collection.
46 The Integrated Waste Division should contract with SunGard to provide further training 88
to the Customer Services Section in the use and deployment of the H.T.E. utility billing
module.The Administrative Analyst II should manage the training of the Customer
Services Section staff in the use of this module.
147 The Integrated Waste Division should contract with SunGard to provide some limited 88
customization of the H.T.E. utility billing module(e.g., commercial roll-offs).The
Administrative Analyst 11 should manage the customization of the H.T.E. utility billing
module workin with the Water Department to assure compatibility.
48 The Administrative Analyst II should arrange the web demonstration of the H.T.E. utility 88
billing module by the City of Sunnyvale for the Customer Services Section.
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Management Study of the Integrated Waste Management Division
# Recommendation Page#
49 A policies and procedures manual should be developed for the Customer Services 90
Section, Integra ed Waste Management Division.
50 The Administrative Analyst II should develop the policies and procedures manual for 90
the Customer Services Section.
51 The City should authorize a Performance Auditor position within the Office of the City 91
Manager, and the Integrated Waste Fund should fund this position, initially.
Chapter 7-Analysis of Solid Waste Collection
52 The Integrated Waste Division should balance the residential trash, recycling, and 92
green waste routes in fiscal year 2010-11 using RouteSmart software.This balancing
should occur at the macro and micro-level.
53 The Integrated Waste Operations Manager,the Administrative Analyst Il, the Integrated 92
Waste Operations Supervisors, and three to five Integrated Waste Operators should
artici ate as a team in completing the balancing of the routes.
54 The Integrated Waste Division should obtain training by RouteSmart in the use of the 92
software. After the training, the Division should utilize the RouteSmart Production Lab
to provide initial assistance in the application and use of the software.
55 The Integrated Waste Management Division should balance the commercial front 101
loader routes using much the same approach recommended earlier for the residential
routes.
56 Additional routes should be established on Monday and Friday, and the twelfth route 101
should operate Monday through Friday as a full route. (While there is a route C-12, it
does not appear to function every day of the week and does not appear to function as a
full route when a twelfth route is utilized). A total of fourteen (14)routes would be
required on Monday and thirteen 13 on Friday.
57 The Integrated Waste Management Division should continue to convert commercial 103
front loader routes to 1-person crews.
58 This conversion should be accomplished by the Operations Supervisor in consultation 103
with the O erators for these routes.
59 Each commercial front loader route should be audited. In situations where backing the 103
front loader truck could be dangerous or the bin is located down an incline, the
Operations Supervisor should arrange for the two(2) Equipment Service Workers to
pull the bin out for easier collection by the front loader, and place the bin back after the
trash has been collected.
60 All of the commercial front loaders acquired by the City should be low cab forward 103
LCF chassis.
61 The City should utilize the conversion to 1-person front loader routes to benefit the 103
commercial customers served by the City by reducing commercial trash collection rates
or providing additional services such as expanded recycling at no additional cost to the
commercial customers.
62 Integrated Waste Operation Supervisors and the Operators should be held accountable 106
for complying with the legal weight limits of the collection vehicles.
63 The development of specifications for collection trucks by the Fleet Services Division 106
should include the participation of representative Operators and Supervisors from the
Inte rated Waste Division.
64 The Integrated Waste Management Division should utilize a more efficient methodology 108
for collection of roll-off containers. bring an empty container to the first container site,
leave that empty container at that site, take the full container to the landfill and dump
the waste from the container,and then take that empty container to the second site.
65 The Integrated Waste Management Division should balance their commercial roll-off 108
routes.
66 The Integrated Waste Division should increase the increase the size of the commercial 108
roll-off routes to not less than 8 roll-off containers per day.
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# Recommendation Pa e#
67 The Integrated Waste Management Division should prepare a five-year replacement 110
Ian for its fleet of solid waste collection vehicles.
68 The Administrative Analyst II should prepare the five-year replacement plan for the 110
Integrated Waste Management Division.
69 In fiscal year 2010-11,the Integrated Waste Division should replace not less than three 110
(3)commercial front loader trucks,four(4)automated side loader trucks, and one (1)
commercial roll-off trucks. Lease-purchase financing should be used for the
re lacement of this equipment.
70 The City should modify the classification for Senior Integrated Waste Operator and 112
Integrated Waste Operator. It should consolidate these two classifications, and require
a valid California Class B Driver's license at hire.
71 Existing incumbents of the Integrated Waste Operator should be exempt from this 112
reauirement, but still able to"flex" up to Senior Integrated Waste Operator-
72 The Fleet Services Division should establish a"line"of Equipment Mechanic I I It's that 114
are largely allocated to the maintenance and repair of automated side loaders,
commercial front loaders,and commercial roll-off trucks
73 This line should include approximately four 4 to five 5 Equipment Mechanic II's. 114
74 One of these four(4)to five(5) Equipment Mechanic II positions should be classified as 114
a Lead Equipment Mechanic with a higher level of compensation that Equipment
Mechanic II.
75 These four(4)Equipment Mechanic and Lead Equipment Mechanic positions should 114
be assi ned to the swing shift.
76 The Fleet Services Division should provide the mobile mechanic with his I her own 115
portable radio, a dedicated channel, and advertise that availability to the Operators of
the Integrated Waste Management Division (as well as other customers in other
organizational units of the City with a consistent need to access to the mobile
mechanic)-
77 The Fleet Services Manager should develop a plan for addressing the problem with 116
solid waste collection equipment downtime for the review and consideration of the
Public Services Director.
78 The Fleet Services Division should develop and adopt service level agreements with 118
the Integrated Waste Management Division.
79 The Fleet Services Division should develop performance measures and report on a 119
monthly basis their accomplishment to the Integrated Waste Management Division.
80 The Fleet Services Manager should coordinate delivery times with the LNG fuel 121
delivery company so that deliveries occur later in the workday(e.g., after 4 p.m.).
81 The City should add a second LNG fueling station at the corporation yard. 121
82 The City should construct an overhead canopy for the LNG fueling station 121
83 The drop-off points for roll-off containers for street sweeping waste should be fixed for 121
each series of street sweeping districts.
84 The Street Maintenance Division and the Integrated Waste Management Division 121
should develop an agreement on the number of containers to be dropped-off for each
series of street sweeping districts.
85 The roll-off containers for street sweeping material should be collected no later than 121
1:30 .m.
86 The Street Maintenance Division and the Integrated Waste Management Division 121
should develop a written agreement regarding the services to be provided by the
Integrated Waste Management Division and the roles and responsibilities of the Street
Maintenance Division and the Integrated Waste Management Division.
Chapter 8-Analysis of Recycling
87 The salary range of the Environmental Project Specialist classification should be 124
increased from $3,105 -$3,774 to$4,188-$5,091
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Management Study of the Integrated Waste Management Division
# Recommendation Page#
88 The Integrated Waste Division should establish a single stream recycling program for 126
multi-family corn lexes.
89 Residents of smaller multi-unit buildings with two(2)to four(4)units should be offered 126
the same type of recycling containers as the single-family residential recycling ro ram.
90 The recycling program for residents of buildings with five(5)or more units should be 126
initiated by working with the managers of the largest buildings and work down to the
smaller buildings.This should include recycling education classes for the property
managers, preparing and distributing public education materials,distribution of public
education materials and personal recycling bins for tenant use, and adjusting solid
waste and rec cling service levels as needed.
91 The City should phase-in mandatory participation for multi-family customers in 2012 to 126
recede the Colton sanitary landfill closure in 2014.
92 The City should require recycling/waste prevention plans and/or conditions for multi- 126
tenant projects, in the building permit process.
93 The Integrated Waste Management Division should mandate construction and 129
demolition debris recycling for projects over a certain size through a construction and
demolition debris ordinance.This ordinance should require 100% diversion of all
portland cement concrete and asphalt concrete, and an average of at least 50%of all
remaining construction and demolition debris from construction, demolition, and
renovation projects.
94 The Integrated Waste Division should develop a Green Building Program designed to t29
reach architects, designers, engineers, builders, and contractors. It should educate
them on construction and demolition debris recycling and reuse and the use Of
resource efficient building materials and techniques.
95 The Integrated Waste Division, should include develop for the consideration of the City 129
Council, a civic green building ordinance, Residential Green Building Guidelines(for
New Home Construction, Home Remodeling and Multifamily)as a city Reference
Document for private residential construction projects, and LEED as a city Reference
Document for pivate commercial projects.
96 The Recycling Section should establish a business recycling assistance program. 131
97 The City should adopt requirements for institutions and/or businesses of a certain size 131
to develop and implement recycling plans for city adoption and implementation).
98 The City should phase-in mandatory commercial recycling beginning in 2011. 131
99 The City should develop and deploy a commercial organics waste collection program. 131
100 The Recycling Section should develop and deploy multiple public education and 133
information efforts that includes residents, homeowner associations,the chamber of
commerce, and business associations. To enhance the effectiveness of these public
education and information efforts, the Section should tailor education materials to target
specific audiences, such as businesses and manufacturers, builders and designers,
professional landscapers, and schools.
101 The City should adopt an objective of no more than 10% contamination of recycled 135
waste.
102 The Recycling Section should develop a media and marketing program targeted at 135
reducing contamination of recycled waste.
103 The Recycling Section should develop and deploy an enforcement program for 135
contamination of recycled waste including the issuance of citations and fines.
104 The Integrated Waste Field Inspector should be focused on the reduction of the 135
contamination of recycled waste through inspection of recycle containers, the issuance
of warning notices, and the u=issuance of citations.
105 The Recycle Section should provide training to recycling collection crews regarding 135
how to detect contamination,what levels of contamination are and are not acceptable,
and the process for issuance of warning notices.
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Management Study of the Integrated Waste Management Division
# Recommendation Page#
106 The City should renegotiate the contract with the Materials Recycling Facility 138
contractor. The contamination rate in the contract should reflect actual rates based
u on sam les of the waste stream, and not 40%.
Chapter 9-Analysis of Administration
107 The Senior Office Assistant should report to the Integrated Waste Division Operations 139
Manager.
108 The number of residential routes should be educed to reduce the span of control for the 139
residential supervisors to twelve routes each by balancing of the residential routes and
increasing their route size.
109 The responsibility for supervising street sweeping should be transferred to the 139
Integrated Waste Division.The commercial roll-off supervisor should supervise the
street sweeping ro ram working through the Lead Motor Sweeper Operator.
110 The Right-of-Way Maintenance staff should report to the Integrated Waste Operations 139
Mana er.
111 The Integrated Waste Field Inspector should report to the Integrated Waste Operations 139
Manager.
112 The Integrated Waste Management Division should develop a clearly written,five-year 142
minimum, Strategic Plan.
113 The Administrative Analyst II should be responsible for facilitating the development and 142
irr lementation of the Division's strategic plan.
114 The Integrated Waste Management should develop goals,objectives, and performance 144
measures
115 The Administrative Analyst 11 should be assigned responsibility for providing training 144
and technical assistance to the Integrated Waste Management Division's managers
and supervisors in the development of goals, objectives, and performance measures.
116 The Administrative Analyst II should be assigned responsibility for providing the 144
necessary training,and technical assistance required for collecting and reporting
performance measurement data.
117 The Integrated Waste Management Division should develop an equipment operator- 146
training program for the proper and safe use of solid waste collection equipment.
Participation by O erators should be mandatory.
118 The Integrated Waste Management Division should clearly document its policies and 148
procedures.
119 The Integrated Waste Management Division should establish a policies and procedures 148
committee, consisting of five to seven staff,that includes a representation of staff at all
levels in the Division.
120 The Administrative Analyst 11 should be assigned responsibility for development of the 148
policies and procedures manual working with the committee.
121 The Integrated Waste Management Division should develop a training plan for its 149
employees based upon a needs assessment.
122 The Integrated Waste Management Division should develop a career development 151
ro ram for its em to ees
123 The Public Services Department should contract for a nexus study to enable the City to 152
char e a construction street impact fee.
124 The City should adopt a construction road impact fee. 152
125 The City should not immediate) "sell"its solid waste collection franchise. 154
126 The management of the Integrated Waste Division should address the productivity 154
problems within the Division that limit the ability of the Division to provide higher levels
of support to the General Fund without negatively impacting the Integrated Waste
Division's ability to provide responsive services.
127 If the productivity problems within the Integrated Waste Division prove intractable, the 154
Ci should"sell"or outsource its solid waste collection franchise.
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Management Study of the Integrated Waste Management Division
# Recommendation Page#
128 The Refuse Fund should increase the "franchise fee"that it pays to the General Fund 158
to 15% of gross revenues.
130 The Refuse Fund should reimburse the General Fund for the extent of under recovered 158
support costs with an additional payment of $1.2 million annually for a period of five-
years. At that point in time, the "loan" by the General Fund to the Refuse Fund should
be considered as having been repaid.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
2. PROFILE
This chapter presents background information regarding the Integrated Waste
Management Division. The chapter includes the following:
• Organizational structure of the Integrated Waste Management Division;
• Workload and staffing trends for the Integrated Waste Management Division
where available; and
• The role and responsibilities of staff within the Integrated Waste management
Division.
The chapter opens with background information regarding the City.
1. THE CITY OF SAN BERNARDINO HAS AN ESTIMATED POPULATION OF
204,483 AND IS THE MOST POPULOUS CITY IN SAN BERNARDINO
COUNTY.
The estimated population of the City of San Bernardino as of January 1, 2009,
was 204,483.' (The data for 2010 is not yet available). The population of the City grew
by almost 25% since 1990 or at rate of about 1.3% per year between 1990 and 2009.
The table below presents the population growth of the City since 1990 in comparison to
the total population of the County.
Jurisdiction 1990 2000 2009
San Bernardino 164,164 185,382 204,483
County Total 1,418,380 1,710,139 2,060,950
The following points highlight the data contained in the table above:
• The County of 2.0 million people has grown by 45.3% since 1990. San
Bernardino, in the same time period, has grown by 24.6%.
• San Bernardino is the most populous city in San Bernardino County with 9.9% of
the County's total population.
• San Bernardino is the 19th largest city in the State in terms of population.
California Department of Finance, Demographic Research Unit
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
The Southern California Association of Governments, in their 2008 population
forecast, predicts continued population growth for San Bernardino, but at a slower rate
than in the recent past. By 2035, San Bernardino is expected to have a population of
265,515 or 29.8% more than the existing 2010 population.2 The population projections
for 2010 have already been affected by the recession; it appears as if the projections for
2010 will be approximately 3% higher than will likely occur. The projection by the
Southern California Association of Governments also indicates that Ontario will grow at
a faster pace than San Bernardino and surpass San Bernardino in population by 2020.
2. THE CITY'S GENERAL FLAN CONTAINS A NUMBER OF GOALS AND
POLICIES FOR SOLID WASTE COLLECTION
The City adopted a general plan on November 1, 2005. The general plan
included a chapter regarding public utilities. That chapter contains a number of
comments regarding solid waste collection in the City as noted below.
Solid waste collection within much of the City and a portion of the
unincorporated planning area is provided by the City's Department of
Public Services. Solid waste collection in the remainder of the planning
area is provided by private haulers through franchise agreements with the
County. Solid waste collected in the planning area is disposed of at
landfills in Colton and Fontana owned and operated by the County of San
Bernardino.
When the Colton and Mid Valley Landfill eventually close, solid waste
generated in the City will be transported to the San Timoteo Landfill also
owned and operated by the County of San Bernardino. The Mid-Valley
Landfill is projected to have approximately 40 years of capacity left.
Regional planning for solid waste issues is conducted by the San
Bernardino County Solid Waste Advisory Committee governed by the
County Solid Waste Management Plan. The City has a representative
serving on the Solid Waste Advisory Committee. Any future solid waste
facilities, such as transfer stations and/or landfills, must be incorporated in
the County Solid Waste Management Plan.
2 Southern California Association of Governments, 2008 Regional Transportation Plan Growth Forecast
Report, 2008.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
As landfills reach their capacities and new landfill sites become
increasingly difficult to establish, the need to reduce solid waste
generation is critical. State law currently requires that local jurisdictions
divert at least 50% of their solid waste from landfills through conservation,
recycling, and composting. Like all California communities, the City of San
Bernardino is required to comply with State regulations.
The challenge for San Bernardino, as well as communities throughout the
state, is to continue to find diversion, recycling, and reuse strategies
instead of relying on sanitary landfills as the primary method of managing
solid waste. As the region grows, it becomes more difficult to site or
expand landfills due to the unpopularity of these types of facilities.
The goal for solid waste collection, as noted in the general plan, was to "provide
an adequate and orderly system for the collection and disposal of solid waste to meet
the demands of new and existing developments in the City." The policies contained in
the general plan that support that goal are presented below.
• Install and maintain public trash receptacles along incorporated City streets in
commercial areas and along major arterials.
• Provide regular street sweeping.
• Continue to reduce the amount of solid waste that must be disposed of in area
landfills, to conserve energy resources, and be consistent with the County Solid
Waste Management Plan and State law.
• Continue to support implementation of regional recycling programs through
participation in the County Solid Waste Advisory Committee, the County Solid
Waste Management Plan, and appropriate State programs.
• Develop and participate in local recycling programs.
• Develop and implement a program of public education regarding the benefits of
recycling.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
3. THE INTEGRATED SOLID WASTE MANAGEMENT DIVISION IS
AUTHORIZED 109.1 POSITIONS AND AN OPERATING BUDGET OF $26.7
MILLION IN FISCAL YEAR 2009-10.
The plan of organization for the Integrated Waste Management Division is
presented in the following page. Important points to note regarding the plan of
organization are presented below.
• While the Division is authorized 109.1 positions, not all of these positions
are located within the Division. A number of positions, while budgeted in the
Division and funded by the Refuse Fund, are located in other divisions within the
Public Services Department. This includes those positions noted in the table
below.
Public Services Administration 2009-10 Adopted FTE
Public Services Director 0.50
Executive Assistant to the Director 0.50
Departmental Accounting Technician 0.60
Administrative Analyst 2 0.50
Sub-Total 2.10
Street Sweeping
Lead Motor Sweeper Operator 1.00
Motor Sweeper Operator 4.00
Sub-Total 5.00
Right-of-Way
Lead Maintenance Worker 2.00
Maintenance Worker I (Flex) 2.00
Maintenance Supervisor 1.00
Maintenance Worker II 3.00
Sub-Total 8.00
TOTAL 15.10
As the table indicates, a total of 15.1 positions (or 13.8% of the positions
authorized for the Integrated Waste Management Division) are actually allocated
to other divisions in the Public Services Department. The Refuse fund only
provides the funding for these positions.
• A total of 4 positions are authorized for Integrated Waste Management
Division Administration. These positions include the division manager and the
clerical and secretarial support for the Division.
• A total of 8 positions are authorized for the Division Call Center / Customer
Services. These positions include a supervisor, 2 Lead Representatives, and 5
Representatives.
• A total of 3 positions are authorized for Recycling. This includes the manager
and 2 specialists.
Matrix Consulting Group Page 19
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
• A total of 79 positions are allocated to Solid Waste Collection. This includes
the manager, the 4 supervisors, 71 operators, the inspector, and the 2 equipment
service workers.
The exhibit following this page presents the allocation of authorized positions for the
division.
Over the past three fiscal years (FY 2007-08 through FY 2009-10), the number of
authorized positions within the Division has increased from 101.75 to 109.10. This
increase is the result of the transfer of 8.0 positions allocated to Right-of-Way to the
Division, the increase of allocation of Public Services Administration staff to the Division,
and the elimination of a Fleet Operations Coordinator position.
Over the past five years (FY 205-06 Actual to FY Budgeted 2009-10), the
revenues generated by the Division have increased by 12% (see table below).
Description 2005-06 2006-07 2007-08 2008-09 2009-10
Interest on Idle Cash $31,261 $70,821 $58,284 $15,000 $15,000
Commercial Rubbish $86,152 $77,617 $72,425 $63,700 $70,000
Commercial Bin Rent $130,448 $100,884 $93,581 $30,000 $50,000
Commercial Bin Service $9,241,858 $9,626,224 $9,803,805 $10,263,700 $10,800,000
Commercial Special $1,124,666 $1,460,411 $1,607,712 $918,400 $925,000
Residential Water Billed $8,622,065 $8,865,093 $8,856,698 $9,365,000 $9,500,000
Residential"B"Accounts $1,087,208 $1,144,970 $1,155,599 $1,236,900 $1,320,000
Dino Bin Service $2,437,484 $2,555,032 $2,531,429 $2,875,200 $3,000,000
Commercial Penalties $18,764 $20,788 $21,410 $20,000 $20,000
Residential penalties $2,431 $1,999 $2,056 $2,000 $2,000
Recycling Receipts $- $174,459 $185,524 $222,600 $225,000
Miscellaneous Other
Revenue $997,361 $236,471 $737,752 $700,000 $700,000
Sale Salvage Matter $14,423 $7,981 $82,370 $30,000 $30,000
TOTAL $23,794,121 $24,342,750 $25,208,645 $25,742,500 $26,657,000
Five sources of revenue comprise 95% of the total revenue generated by the Division:
commercial bin service, commercial special, residential water billed (residential solid
waste collection billed on the water bill), residential "B" accounts, and Dino bin service.
Matrix Consulting Group Page 21
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 2
Authorized Staffing for the
Integrated Waste Management Division
Public Services Administration 2009-10 Adopted FTE
Public Services Director 0.50
Executive Assistant to the Director 0.50
Departmental Accounting Technician 0.60
Administrative Analyst 2 0.50
Sub-Total 2.10
Integrated Waste Administration
Integrated Waste Management Division Manager 1.00
Executive Assistant 1.00
Departmental Accounting Technician 1.00
Senior Office Assistant 1.00
Sub-Total 4.00
Call Center
Integrated Waste Customer Service Supervisor 1.00
Lead Integrated Waste Customer Service Representative 2.00
Integrated Waste Customer Service Representative 5.00
Sub-Total 8.00
Solid Waste Collection
Integrated Waste Operation Manager 1.00
Integrated Waste Operation Supervisor 4.00
Senior Integrated Waste Operator 55.00
Integrated Waste Operator(Flex) 16.00
Integrated Waste Field Inspector 1.00
Equipment Services Worker 2.00
Sub-Total 79.00
Recycling
Environmental Projects Manager 1.00
Environmental Projects Specialist 2.00
Sub-Total 3.00
Street Sweeping
Lead Motor Sweeper Operator 1.00
Motor Sweeper Operator 4.00
Sub-Total 5.00
Right-of-Way
Lead Maintenance Worker 2.00
Maintenance Worker I (Flex) 2.00
Maintenance Supervisor 1.00
Maintenance Worker 11 3.00
Sub-Total 8.00
TOTAL 109.10
Matrix Consulting Group Page 22
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
The table below presents the actual expenditures for FY 2006-07 and 2007-08,
estimated expenditures for 2008-09, and budget for the Division for fiscal year 2009-10.
Category 2006-07 2007-08 2008-09 2009-10
Personal Services $5,639,093 $5,911,090 $6,116,920 $6,744,600
Materials/Operation _ $7,695,658 $7,495,651 $7,330,532 $7,907,200
Contract Service $1,169,362 $1,197,410 $826,225 $1,031,000
Internal Service $5,327,893 $7,092,678 $6,018,200 $5,679,200
Capital Outlay__ $166,228 $114,315 $130,131 $114,600
Debt Service $1,533,552 $1,134,955 $1,858,967 $2,726,800
Grants/Credits $- $- $- $ 30,000
TOTAL $21,531,786 $22,946,099 $22,280,975 $24,173,400
Important points to note regarding the trends in expenditures / budget for the Division
are presented below.
• The costs of Personal services have increased by 19.6% since 2006-07;
• The costs of Materials i Operation have increased by 2.7% since 2006-07;
• The costs of Contract services have decreased by 11.8% since 2006-07;
• The costs of Internal Services have increased by 6.6% since 2006-07; and
• The costs of debt service have increased by 77.8% since 2006-07.
The most significant category of cost in materials / operations consisted of dump
/waste fees ($6,964,200 or 88% of the materials / operations budget in 2009 / 10). The
most significant categories of costs in internal service consist of liability ($1,251,100),
and Garage / Fuel charges ($3,826,700): these two categories of costs comprise 89%
of the internal services budget for the 2009 / 10 budget.
The Refuse Fund is transferring $2,712,300 to the general fund in 2009-10. This
transfer consists of the following categories:
Category of Transfer In 2009-10 Budget
Administration/Accounting $1,910,500
Grant Wdtin /Communications $30,000
Street Repair $50,000
Lease City Yards $600,000
Matrix Consulting Group Page 23
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Category of Transfer In 2009-10 Budget
Lease City Hall $55,200
NPDES Coordinator Position $66,600
TOTAL $2,712,300
The estimated fund balance for the Refuse Fund at the beginning of fiscal year
2009-10 was $940,200 and was estimated at $776,300 at the completion of the fiscal
year. The estimated year-end fund balance amounts to 3.2% of fiscal year 2009-10
expenditures.
4. THE INTEGRATED WASTE MANAGEMENT DIVISION OPERATES EIGHT
RESIDENTIAL RECYCLING ROUTES, EIGHT RESIDENTIAL GREEN WASTE
ROUTES, AND TWELVE RESIDENTIAL TRASH COLLECTION ROUTES.
The Integrated Waste Management Division uses automated side loader trucks
for the collection of trash, recycling, and green waste. The Division uses 1-person crews
for the collection of this waste. To assess workload for residential solid waste collection,
the Matrix Consulting Group sampled 2 weeks in July 2009 and two weeks in October
2009. Important points to note regarding residential solid waste collection work practices
and workload are noted below.
• The residential collection operators work a 4 / 10 schedule Monday through
Friday. The shift begins at 6:00 a.m.
There are twelve (12) trash routes. The median daily number of containers
collected for this four-week sample for each route is presented in the exhibit
following this page. The median daily number of containers collected for this four-
week sample for each route is presented in the exhibit following this page. As the
exhibit notes, the median number of containers collected on different routes for
this four-week sample ranged from a low of 439 containers to a high of 894
containers. Excluding route T-11, however, the median number of containers
ranged from 727 containers to 894 containers, a range of 23%.
Matrix Consulting Group Page 24
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 3
Daily Number of Residential
Containers Collected By Route
For a Four-Week Sample
1. Trash Routes — Median Daily Number of Containers Collected By Route
Route
Number T-1 T-2 T-3 T 4 T-5 T-6 T-7 T-8 T-9 T-10 T-11 T-12
Median 819 798 735 833 790 894 1 765 860 727 792 439 772
Number of
Containers
2. Recycling Routes — Median Daily Number of Containers Collected By Route
Route
Number R-1 R-2 R-3 R4 R-5 R-6 R-7 R-8
Median 602 937 713 775 589 765 770 945
Number of
Containers
3. Green Waste Routes — Median Daily Number of Containers Collected By
Route
Route
Number G-1 G-2 G-3 G-4 G-5 G-6 G-7 G-8
Median 779 606 699 747 559 741 608 384
Number of
Containers
Matrix Consulting Group Page 25
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
• There are eight (8) recycling routes. Not each of the recycling routes are
collected each day; route 5, for example, during a four week sample in July and
October 2009, was collected only 37% of the collection days. The median daily
number of containers collected for this four-week sample for each route is
presented in the exhibit preceding this page. As the exhibit notes, the median
number of containers collected on a daily basis ranged from a low of 602
containers to a high of 945 containers.
• There are eight (8) green waste routes. The median daily number of containers
collected for this four-week sample for each route is presented in the exhibit
preceding this page. As the exhibit notes, the median number of containers
collected on a daily basis ranged from a low of 384 containers to a high of 779
containers.
• The schedule for collection of residential refuse is depicted in the chart
below. This schedule "mirrors" the schedule for street sweeping.
j �Ji a8 t
Residential Servic a Days
Monday fo Waterman Avenue \ �
North of 30 Freeway` v
East of 215 Freewey \ \ \6 yA, 0
kin g
Tuesday
West of Waterman Avenue
South of 30 Freeway - 11
North of Baseline Street ...w..Jl,ava
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Wednesday
West ofWaterman 1
South of Baselne Street `
l
Thursday l " �
East of Waterman Avenue J ag
fnday 1
No Service wept during weeks
vdth an observed
Holiday Collect Syc.S V*KkWWa7 f_
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5. THE INTEGRATED WASTE MANAGEMENT DIVISION OPERATES TWELVE
COMMERCIAL FRONT LOADER ROUTES DURING WEEKDAYS AND TWO
ON WEEKENDS.
The Integrated Waste Management Division uses front loader trucks for the
collection of commercial trash and recycling. The Division uses 2-person crews for the
Matrix Consulting Group Page 26
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
collection of this commercial waste with the exception of routes C-3 and C-4, which are
frequently operated with 1-person crews. To assess workload for commercial solid
waste collection, the Matrix Consulting Group sampled 2 weeks in July 2009 and two
weeks in October 2009. Important points to note regarding commercial front-end loader
solid waste collection work practices and workload are noted below.
• The commercial front loader collection operators work a 5 18 schedule. The
shift begins at 6:00 a.m.
• Commercial front loader collection services are provided Monday through
Saturday. Two (2) commercial collection routes are operated on Saturday.
Eleven (11) commercial routes are operated Monday through Friday.
• 2-person crews are utilized for commercial front loader refuse collection
with some exceptions. Based upon a five-week sample in June and July 2009,
route C-4 uses a 1-person crew for 92% of the collection days Monday through
Friday, route C-3 uses a 1-person crew for 68% of the collection days Monday
through Friday, and route C-2 uses a 1-person crew for 24% of the collection
days Monday through Friday.
• One of the twelve commercial front loader collection routes is a recycling
route. Route C-15 is a recycling route. All of the other routes are trash routes.
• The median number of containers collected varies for each commercial
front loader collection route. The median daily number of containers collected
for this four-week sample for each route is presented in the exhibit following this
page. As the exhibit notes, the median number of containers collected on
different trash routes for this four-week sample ranged from a low of 108
containers to a high of 145 containers, a range of 34%.
Matrix Consulting Group Page 27
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 4 (1)
Daily Number of Commercial
Containers Collected By Route
For a Four-Week Sample
1. Median Number of Commercial Front-End Loader Containers Collected By
Day of Week
Monday Tuesday Wednesday Thursday Friday SaturdayT Median
C-1 160 138 152 138 154 - 145
C-2 140 105 130 130 130 - 130
C-3 165 123 138 114 139 - 131
C-4 136 139 130 134 116 - 132
C-5 130 125 125 120 128 - 125
C-6 130 125 133 118 140 127
C-7 143 130 129 114 137 - 129
C-8 153 124 110 122 133 - 123
C-9 115 123 119 120 130 - 120
C-10 140 123 128 118 145 - 125
C-11 139 103 119 104 112 - 108
C-12 44 28 - - - -
C-13 - - 91
C-14 - - - 95 -
C-15 108 80 58 88 99 - 84
TOTAL 1,700 1,436 1,496 1 1,417 1,561 185
2. Commercial Roll-Off Drop Box Containers Collected
Total Number of Containers Collected Per Day of Week For the Four Sample Weeks
October 26 October 19 July 6 July 13
Monday 31 34 27 24
Tuesday 31 37 20 34
Wednesday 33 42 41 0
Thursday 36 31 33 37
Friday 43 42 38 42
Matrix Consulting Group Page 28
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 4 (2)
Total Number of Routes
October 26 October 19 July 6 July 13
Monday 7 6 5 5
Tuesday 7 7 4 7
Wednesday 7 6 7 0
Thursday 8 7 6 7
Friday 8 9 7 7
Average Number of Containers Per Route
October 26 October 19 July 6 July 13
Monday 4.43 5.67 5.40 4.80
Tuesday 4.43 5.29 5.00 4.86
Wednesday 4.71 7.00 5.86 0.00
Thursday 4.50 4.43 5.50 5.29
Friday 5.38 4.67 5.43 6.00
Matrix Consulting Group Page 29
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
5. THE INTEGRATED WASTE MANAGEMENT DIVISION OPERATES SEVEN
COMMERCIAL ROLL-OFF DROP BOX ROUTES DURING WEEKDAYS.
The Integrated Waste Management Division also uses roll-off drop box trucks for
the collection of commercial trash. The Division uses 1-person crews for the collection
of this commercial waste. To assess workload for commercial roll-off drop box solid
waste collection, the Matrix Consulting Group sampled 2 weeks in July 2009 and two
weeks in October 2009. Important points to note regarding commercial roll-off drop box
solid waste collection work practices and workload are noted below.
• The commercial roll-off drop box collection operators work a 5 / 8
schedule. The shift begins at 6:00 a.m.
• Commercial roll-off drop box collection services are provided Monday
through Friday. These services are not provided on Saturday.
• The average number of containers collected varies for each commercial
roll-off drop box collection route. The average daily number of containers
collected for this four-week sample for each route is presented in the exhibit
preceding this page. As the exhibit notes, the average number of containers
collected on different trash routes for this four-week sample ranged from a low of
4.4 containers per route to a high of 7 containers per route, a range of 58%.
Overall, the average number of containers collected per route ranges from 5 to 6
Monday through Friday.
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Management Study of the Integrated Waste Management Division
3. EVALUATION OF THE IMPLEMENTATION OF THE
R3 CONSULTING GROUP REPORTS
The R3 Consulting Group completed two management studies of the Integrated
Waste Management Division. One of these two studies was completed in August 2005
and encompassed a Collection Operations Review. The second study, completed in
May 2008, encompassed the development of a Business Plan for the Integrated Waste
Management Division. This chapter presents an analysis of the implementation of the
recommendations in these two management studies by the Integrated Waste
Management, Division.
1. THE INTEGRATED WASTE MANAGEMENT DIVISION HAS IMPLEMENTED
FEW OF THE RECOMMENDATIONS CONTAINED IN THE rnLLErTInN
OPERATIONS REVIEW.
The R3 Consulting Group was retained in 2005 to conduct a "Collection
Operations Review." The purpose of that management study was review the Division's
collection operations and develop recommendations to improve those operations in the
short-term and on a longer-term basis.
The issues that existed in the Division at that time included:
• High levels of overtime;
• Unbalanced residential collection routes;
• Inadequate availability of collection vehicles on a daily basis (vehicle availability);
and
• Inability to staff a sufficient number of daily collection routes on a consistent
basis.
As part of the management study, R3 Consulting Group met with management,
reviewed operational information including productivity and vehicle availability data,
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Management Study of the Integrated Waste Management Division
observed collection activities in the field, conducted residential route time and motion
analysis, audited commercial accounts, and performed an analysis of current and
projected residential solid waste collection productivity. R3 Consulting Group also
reviewed the previous management study of the Division — "Rate and Efficiency Study"
— completed in 1996, and noted that "there appears to have been limited progress
effectively addressing concerns that ere noted in that study."
The "Collection Operations Review" identified nine (9) recommendations. These
nine (9) recommendations are presented in the table below.
Cost Cost Implementation
Recommendation Increase Decrease Status
1 The Division should immediately begin shifting $1,364,000 $1,250,000 Not
loads away from Mid-Valley Landfill to the Inland implemented
Transfer Station in Colton for solid waste on at
least a short-term basis to relive some of the
stress on the currents stem.
2 The Division should immediately fill any open $442,000 $- Partially
vacancies for management staff, supervisors, Implemented
and route drivers; the Division consider staffing
the Assistant Manager position(s)to support the
changes that are needed to improve the
Division's operations, hiring a recycling
coordinator,two additional route supervisors,and
one additional customer service representative.
3 The Division should work closely with Fleet $ $ Not
Services to provide 80%or greater daily implemented
availability;to the extent that Fleet Services
simply is not able to complete repairs on a timely
basis, the Division (City)should at least consider
I contracting out certain maintenance
requirements on at least a short-term basis
unless or until a reasonable availability can be
assured.
4 The Division needs to take immediate steps to $125,000 $- Not
staff additional residential routes to service the implemented
current workload.
5 The Division should adopt productivity standards $- $ Not
for both residential and commercial collection implemented
operations
6 The Division should re-route the residential $250,000 $ Not
collection system. This should include implemented
transitioning to a 5-day, 8-hour per day collection
schedule, and, if desired, implementing multiple
commodity collection routes.
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Cost Cost Implementation
Recommendation Increase Decrease Status
7 The Division should request that the City's $- $ Not
Information Services department install implemented
RouteSmart 9x and associated database system
needs.
8 The Division should consider 1-person crews for $ $187,200 Partially
commercial collection. Implemented
9—The Division should require that customer $- $- Partially
service and collection operations(dispatch and Implemented
drivers) fully implement and utilize the H.T.E.
billinq system.
TOTAL $2,181,000 $1,437,200
Altogether, the recommendations contained within the report would increase
annual costs by $743,800.
Of the nine (9) recommendations, six (6) have not been implemented. Some of
the problems that generated these recommendations no longer exist. The problems with
fleet availability have largely been resolved (as will be noted later in this report). Much of
the "front-line" fleet assigned to the Division has been replaced in the past several
years. This largely resolves recommendation #3. The problems with residential refuse
collection — trash, recycling, and green waste — have largely been resolved. This largely
resolves the need to implement recommendation #4.
Other parts of the recommendations should not be recommended.
Recommendation #6 — to transition to a 5-day, 8-hour per day collection schedule for
residential refuse collection — should not be implemented. The Division should not
implement multiple commodity collection routes as recommended in recommendation
#6. This is not a standard practice in residential solid waste collection. The
recommendation to consider staffing an Assistant Manager — part of recommendation
#2 — should not be implemented. The recommendation to add two additional Route
Supervisors - — part of recommendation #2 — should not be implemented. The
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Management Study of the Integrated Waste Management Division
recommendation to add a Customer Service Representative - — part of recommendation
#2 — should not be implemented. The recommendation for the Division to use the Inland
Valley Transfer Station, and not the Mid-Valley Landfill in Rialto, should not be
implemented (recommendation #1). The Mid-Valley Landfill is located 11.1 miles from
City Hall. The San Timoteo landfill in Redlands is located 12.3 miles from City Hall. The
Inland Regional Municipal Recycling Facility in Colton is 3.7 miles from City Hall. The
use of the Inland Regional Municipal Recycling Facility would potentially reduce one-
way travel time by 6 minutes to as much as 20 minutes in traffic (to the San Timoteo
landfill in Redlands), but would have increased tipping costs by $1,364,000 annually
(based on the R3 Consulting Group estimate). The estimate that solid waste collection
personnel costs would be reduced by $1,250,000 annually is not substantiated in the
report, and is not supported by the reduction of one-way travel time of 6 to 20 minutes.
The Integrated Waste Management Division should implement other
recommendations, however. Those recommendations are presented below.
• Recommendation #5 - The Division should adopt productivity standards for
both residential and commercial collection operations. The Matrix Consulting
Group will recommend productivity standards later in this report.
Recommendation #6 - The Division should re-route the residential
collection system. This recommendation is part of recommendation #6. The
residential collection routes — trash, recycling, and green waste — are significantly
imbalanced.
• Recommendation #7 - The Division should request that the City's
Information Services department install RouteSmart 9x and associated
database system needs. This is an important technological tool that will assist
managers and supervisors in the Division to balance residential and commercial
routes. However, there remains much work that must be accomplished before
this software can be effectively utilized. This will be discussed later in this report.
• Recommendation #8 - The Division should consider 1-person crews for
commercial collection. The Division has begun to implement this
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Management Study of the Integrated Waste Management Division
recommendation, at the initiative of the supervisor, and not management. This
recommendation has been partially implemented. It is largely a prevalent practice
in progressive cities as noted by the R3 Consulting Group. The Division should
fully deploy 1-person crews for commercial front-end loader solid waste
collection. This will require acquisition of low entry front-end loader trucks (three
low entry front-end loader trucks are already in service).
• Recommendation #9 - The Division should require that customer service
and collection operations (dispatch and drivers) fully implement and utilize
the H.T.E. billing system. Customer Services in the Division has not been able
to implement the system. It requires a higher level of technology skills than
available in Customer Services.
Altogether, there are a number of relevant and worthwhile recommendations contained
in the Collection Operations Review." The Integrated Waste Management Division
Manager should develop a plan of implementation for the review and approval of the
Public Services Director for recommendations #5, #6 (pertaining only to the rerouting of
residential collection routes), #7, #8, and #9.
Recommendation #1: The Integrated Waste Management Division Manager
should develop a plan of implementation for the Collection Operations Review for
the review and approval of the Public Services Director.
Recommendation #2: The Integrated Waste Management Division Manager
should include within the plan of implementation the recommendation, the
manager or supervisor responsible for implementation of the recommendation,
the priority of the recommendation, the time frame for start and finish of the
implementation, and the costs associated with implementation.
Recommendation #3: The Integrated Waste Management Division Manager
should work with his / her management and supervisory team in the development
of the plan of implementation.
Recommendation #4: Some of the recommendations contained in the Collection
Operations Review should not be implemented. This includes recommendation #6
— to transition to a 5-day, 8-hour per day collection schedule for residential refuse
collection, recommendation #6 - to implement multiple commodity collection
routes, recommendation #2 - to consider staffing an Assistant Manager, two
additional Route Supervisors, and a Customer Service Representative, and
recommendation #1 - to use the Inland Valley Transfer Station and not the Mid-
Valley Landfill in Rialto.
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2. THE INTEGRATED WASTE MANAGEMENT DIVISION HAS IMPLEMENTED
FEW OF THE RECOMMENDATIONS CONTAINED IN THE BUSINESS PLAN.
The R3 Consulting Group was retained in 2008 to develop a Business Plan for
the Division. The purpose of the Business Plan was to present a 5-year work plan to
guide the Division in its efforts to deliver high quality services in a cost-effective manner
and to successfully compete with comparable utilities, both public and private, in terms
of efficiency, productivity, customer service and customer rates, and net financial impact
on the City.
The Business Plan identified ninety (90) recommendations. These ninety (90)
recommendations are presented in the exhibit presented at the end of this c1lapter.
Important points to note regarding these recommendations are presented below.
• The recommendations would increase the Division's costs by $2,518,550.
Two-thirds of these costs are one-time costs. These one-time costs include the
following:
— The City should conduct an analysis necessary to balance residential and
commercial routes;
— The FY 2008-09 budget should incorporate the cost to conduct a detailed
cost of service study to establish accurate rates for each line-of-business
starting in FY 2009-10;
— The FY 2008-09 budget should incorporate the cost to begin a feasibility
study for a Corporation Yard / MRF / Transfer Station (with an estimated
capital outlay cost of$25 million); and
— The FY 2008-09 budget should incorporate the cost to purchase and
install an Integrated Customer Information System including residential
and commercial account audits; software for account management, billing,
routing, dispatching and reporting; collection vehicle on-board GPS route
and account tracking.
The other costs, amounting to $868,800 annually, would consist of ongoing
operating costs associated with the addition of staff to the Division, and an
expanded public outreach programs. The recommended additions of staff —
recommended for FY 2008-09 — include ten (10) positions including 5 residential
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Management Study of the Integrated Waste Management Division
drivers, 1 residential supervisor, 2 public education staff, 1 customer service
representative, 1 residential dispatcher / customer service representative,
eliminate 5 commercial drivers add 1 commercial supervisor, add 1 commercial
regular public education staff, add 2 commercial regular account supervisors,
and add 1 commercial dispatcher
• The recommendations identify potential annual cost savings and annual
revenue of $6,065,000. The most significant proportion of these revenues and
cost savings were based upon an increase in the diversion of trash from landfills.
These types of recommendations require a long-term sustained effort and
presume an increase in recycling and a reduction in the total costs of tipping
fees. The basis for the cost savings and revenues were not cited in the report.
The cost savings were based upon an increase by 30% in the diversion rate for
residential and commercial waste streams. The City, based upon data reported in
2006, has achieved a 54% diversion rate. An increase of 30% in that diversion
rate would require the City to achieve a 70% diversion rate. Overall, the State
average is 59%.
Research does suggest that, when designed right, recycling programs are cost-
comaetitive with trash collection and disposal. In fact studies have concluded that
recycling costs less than traditional trash collection and disposal when
communities achieve high levels of recycling. It does not suggest that recycling
would offer substantive reductions in the costs; one cost — tipping fees — is
largely replaced by the costs of recycling such as additional collection staff,
additional collection vehicles, the costs of operating Materials Recycling
Facilities, etc.
Moreover, the savings cited by the R3 Consulting Group for increased recycling -
$2,526,000 - would require that the City reduce the total tipping fee costs by
36%.
• The recommendations covered a wide variety of topics. These topics include
expenditure and revenue accounting, customer service, general operations,
residential services, commercial services, temporary services, FY 2008-09
budgets and customer rates, and privatization / managed competition.
• The recommendations were not prioritized. The report does present examples
of implementation steps. These steps are laid out by year (i.e., year 1, year 2,
year 3 through 5).
• Approximately eleven (11) of the ninety (90) recommendations, or 12%,
have been implemented, partially implemented, or are in progress. This
includes the recommendations presented below.
Require advance payment for temporary drop boxes via the Customer
Service Representatives (no payment to drivers). (Implemented).
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— All trucks that currently have "on-board scales" should be calibrated and
operational. (In Progress).
— All drivers should be trained in the operation of the "on-board scales." (In
Progress).
— Route residential routes to the closest disposal facility. (Implemented).
— Drivers should be held accountable for overweight loads, missed
collections, and driver caused damages. (Partially Implemented).
— The Division should consider conducting a recycling characterization study
to determine contamination levels and evaluate opportunities for
improvement. (In Progress).
— Include a complete bin inventory assessment as part of the route audit
with procedures established to assure ongoing accuracy. (In Progress).
— Minimize the number of 2-person commercial routes and reassign the
"extra" drivers to residential collection (estimated reassignment of F to 6
drivers). (In Progress).
— Hold drivers accountable for overweight loads, missed collection, and
driver-caused damages. (Partially Implemented).
— The FY 2008-09 budget should incorporate capital replacement for
residential containers, residential collection vehicles, commercial
containers, commercial collection vehicles, and street sweepers. (Partially
Implemented).
The City should not consider the privatization of the services delivered by
the Division. (Implemented).
• The Matrix Consulting Group recommends that some of the
recommendations contained in the Business Plan should not be
implemented. These include the recommendations presented below.
Purchase an Integrated Customer Information System for the residential,
commercial, and temporary services.
Hire one (1) additional Customer Service representative to reduce the
number of customers to Customer Service Representatives to a ratio of 1
6,000.
Matrix Consulting Group Page 38
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— Hire two (2) Commercial Account Supervisors that will be responsible for
all commercial accounts.
— Hire dispatchers (a.m. and p.m.) that receive and coordinate all Roll-Off
and Commercial service request orders.
— Re-balance residential routes based upon an 8-hour work day, 5 days of
collection.
— The FY 2008-09 budget should incorporate the cost to purchase and
install an Integrated Customer Information System including residential
and commercial account audits; software for account management, billing,
routing, dispatching and reporting; collection vehicle on-board GPS route
and account tracking.
— The FY 2008-09 budget should incorporate the cost to begin a feasibility
study for a Corporation Yard / MRF / Transfer Station.
The FY 2008-09 budget should incorporate the cost to implement
aggressive public outreach programs and enforcement.
— The City should increase the number of authorized positions in the
Integrated Waste Management Division by ten (10) positions including 5
residential drivers, 1 residential supervisor, 2 public education staff, 1
customer service representative, 1 residential dispatcher / customer
service representative, eliminate 5 commercial drivers add 1 commercial
supervisor, add 1 commercial regular public education staff, add 2
commercial regular account supervisors, and add 1 commercial
dispatcher.
— The recommendation to implement separate street sweeping charges on
residential and commercial customers — included within recommendation
#86 — could only be implemented with the approval of voters given the
requirements of Proposition 218.
As discussed later in this report, the Matrix Consulting Group does not
recommend that the existing utility billing program — H.T.E. — be replaced. The
City of Sunnyvale is successfully utilizing this program for its own refuse
franchise. The Matrix Consulting Group does not recommend the addition of staff
to the Division at this point in time. As will be discussed later in this report, there
are opportunities to improve the efficiency of the Division and absorb additional
workload.
However, there are a number of relevant and worthwhile recommendations
contained in the Business Plan. The Integrated Waste Management Division Manager
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Management Study of the Integrated Waste Management Division
should develop a plan of implementation for the review and approval of the Public
Services Director.
Recommendation #5: The Integrated Waste Management Division Manager
should develop a plan of implementation for the Business Plan for the review and
approval of the Public Services Director.
Recommendation #6: The Integrated Waste Management Division Manager
should include within the plan of implementation the recommendation, the
manager or supervisor responsible for implementation of the recommendation,
the priority of the recommendation, the time frame for start and finish of the
implementation, and the costs associated with implementation.
Recommendation #7: The Integrated Waste Management Division Manager
should work with his / her management and supervisory team in the development
of the plan of implementation.
Recommendation #8: Some of the recommendations contained in the Business
Plan should not be implemented. This includes the recommendations to purchase
an i ntegrated Customer I nformation System for the r0mmercial and
temporary services, to increase the number of authorized positions within the
Integrated Waste Management Division, to re-balance residential routes based
upon an 8-hour work day, 5 days of collection, to begin a feasibility study for a
Corporation Yard / MRF / Transfer Station, and to incorporate the cost within the
budget to implement aggressive public outreach programs and enforcement.
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Management Study of the Integrated Waste Management Division
Exhibit 5 (1)
Recommendations in the Business
Plan Developed by the R3 Consulting Group
Cost Cost Implementation
Recommendation Increase Decrease Status
Expenditure and Revenue Accounting
1 Establish all budgets on a line-of-business basis- $ $ Not
residential, commercial, temporary services, street Implemented
sweeping, and city services.
2 Account for all revenues and expenses on a line-of- $ $- Not
business basis Implemented
3 Account for lease payments, capital purchases,and $- $- Not
capital reserve amounts on separate line items by Implemented
line-of-business
4 Record tip fees by function (disposal, green waste, $ $ Not
recycling, C & D) Implemented
5 Establish a capital acquisition reserve account of $- $ Not
10%for planned future needs. Implemented
6 Establish an operating reserve account of 10%for $- $ Not
unanticipated operating charges. Implemented
7 Adopt rate structures to generate revenue and cover $- $ Not
expenses for each line-of-business. Implemented
8 Audit 100%of residential, commercial, and on-call $- $ In progress
accounts to verify/identify service levels
9 Accept over-the-phone or on-line credit/debit card $ $ Not
payments,and automatic payments. Implemented
10 Require advance payment for temporary drop boxes $ $ Implemented
via the Customer Service Representatives (no
payment to drivers)
11 Establish a debt collection procedure, including tax $ $ Not
liens for delinquent accounts. Implemented
Customer Service
12 Purchase an Integrated Customer Information $- Not
System for the residential, commercial, and Implemented
temporary services.
13 Establish separate Customer Service $ $ Not
Representative teams to handle residential Implemented
customers separately from Commercial and
Temporary customers.
14 Hire one (1)additional Customer Service $- $ Not
representative to reduce the number of customers Implemented
to Customer Service Representatives to a ratio of 1
6,000.
15 Hire two(2)Commercial Account Supervisors that $- $ Not
will be responsible for all commercial accounts. Implemented
16 Establish a procedure to formally track all calls and $- $ Not
service requests. Implemented
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Management Study of the Integrated Waste Management Division
Exhibit 5 (2)
Cost Cost Implementation
Recommendation Increase Decrease Status
17 Hire dispatchers(a.m. and p.m.)that receive and $- $- Not
coordinate all Roll-Off and Commercial service Implemented
request orders.
18 Implement a ride-along program for Customer $- $- Not
Service Representatives to observe on-route Implemented
operations.
19 Introduce real-time GIS I GPS vehicle monitoring, $- $- Not
interfaced with radio frequency identification in all Implemented
new bins,containers, and carts.
20 Customer Service should reduce the extent of bad $- $164,000 Not
debt to 2% Implemented
General Operations
21 Establish best management target productivity $- $- Not
metrics. Implemented
22 Establish diversion standards for residential $- $- Not
recyclables, residential green waste, commercial Implemented
recyclables, and construction and demolition debris.
23 Supervisors and drivers should review and monitor $- $- Not
all current routes to determine maximum load points Implemented
and eliminate vehicle overweights.
24 Current accurate sequenced route sheets and maps $- $- Not
are needed, with all new stops verified. Implemented
25 All trucks that currently have "on-board scales" $- $- In progress
should be calibrated and operational.
26 All drivers should be trained in the operation of the $- $- In progress
"on-board scales."
27 Establish and enforce a formal overweight policy $- $- Not
Implemented
28 All driver paper work, dump tickets, and Service $- $- Not
Request Order's should be reviewed with the drivers Implemented
at the end of the day by the assigned supervisor or
driver.
29 Reconcile all driver tickets with tip fee tickets on a $- $- Not
daily basis. Implemented
30 Unaccounted or lost tickets should be"recovered" $- $- Not
the following day. Implemented
31 Overweight loads should be documented daily by $- $- Not
the supervisor and driver to determine the cause Implemented
and method of prevention.
32 Implement on-board scale house readers. $- $- Not
Implemented
Residential Services
33 Purchase and install GPS software and tracking $- $- Not
devices for all residential collection vehicles. This Implemented
should be tied directly to an Integrated Customer
Information System.
34 Audit all residential accounts to verify account $- $- Not
information,and reconcile to accurate route sheets. Implemented
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Management Study of the Integrated Waste Management Division
Exhibit 5 (3)
Cost ffDecrease plementation
Recommendation increase Status
35 Re-balance residential routes base upon an 8-hour $- Not
work day, 5 days of collection and with established mplemented
productivity requirements and evenly balances
among garbage, recycling and green waste
collection (650 to 800 accounts/route).
36 Provide route books and daily route logs to drivers $ $ Not
to verify account data and any requested changes. Implemented
37 Reassign"extra"commercial drives to residential $- $ Not
recycling and green waste routes. Implemented
38 Route residential routes to the closest disposal $- $- Implemented
facilit .
39 Reassign residential supervisors to be responsible $ $ Not
for geographic areas rather than lines of business. Implemented
40 Drivers should be held accountable for overweight $ $ Partially
loads, missed collections, and driver caused Implemented
damages.
41 Focus on reducing recyclables and green waste $- $ Not
contamination through on-route"cart'checks, Implemented
increased public education efforts, 'tagging"
contaminated carts, and pulling recycling and
green waste carts from habitual offenders.
42 The Division should consider conducting a $- $ In Progress
recycling characterization study to determine
contamination levels and evaluate opportunities for
improvement.
43 The Division should consider renegotiating the $ $ Not
current residential recycling processing agreement Implemented
as contamination is reduced.
44 Increase outreach and education for recycling and $ $2,515,000 Not
green waste programs, including social marketing Implemented
techniques.
45 Provide continual training on collection techniques $ $- Not
to reduce unintentional damage to carts. Implemented
46 Provide continual training on established $- $- Not
procedures for issuing non-collection notices, Implemented
Service request Orders, and completing their daily
lo as.
47 Reduce vehicle spare rations to 15%. $- $250,000 Not
Implemented
Commercial Services
48 Purchase and install GPS software and tracking $- $ Not
devices for all residential collection vehicles. Implemented
49 Enter all current customer information into the new $ $ Not
software system (the Customer Information Implemented
S stem).
50 Audit all commercial accounts to verify account $- $ In progress
information, and reconcile with the customer
account system.
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Management Study of the Integrated Waste Management Division
Exhibit 5 (4)
Cost Cost Implementation
Recommendation Increase Decrease Status
51 Include a complete bin inventory assessment as $- $- Partially In
part of the route audit with procedures established Progress
to assure ongoing accuracy
52 Conduct commercial waste audits for all $- $- Not
commercial accounts, identifying recycling and Implemented
organic rich accounts. Priority should be given to
the 20% largest commercial accounts in the first
year(UD to 500 total).
53 Establish "select'commercial recycling and organic $- $2,986,000 Not
collection routes to accommodate high Implemented
concentrations of recyclable and organic material.
54 Focus on reducing recyclables and green waste $- $- Not
contamination through on-route"bin"checks, Implemented
increased public education efforts, "tagging"
contaminated bins, and pulling recycling bins from
habitual offenders.
55 Coordinate drivers, supervisors, and transfer $- $- Not
station personnel to work together to assure that Implemented
selected routes maintain high levels of diversion.
56 Rebalance commercial routes with specific $- $- Not
productivity standards established (i.e., each route Implemented
should be managed as a"profit center"with 80 to
120 lifts per route).
57 Minimize the number of 2-person commercial $- $- Partially
routes and reassign the"extra"drivers to Implemented
residential collection (estimated reassignment of 5
to 6 drivers).
58 Drives should not collect overloaded bins or from $- $- Not
locations that require the driver to leave the truck to Implemented
clear a path to the bin or place items in the bin prior
to collection.
59 All bin enclosures should be inspected to ensure $- $- Not
access and safety. Implemented
60 Develop new bin enclosure standards to assure $- $- Not
adequate collection space for recycling, organics, Implemented
and refuse, and to assure that new and remodeled
commercial developments provide adequate
collection space.
61 Target"clean"recycling loads, aggressively target $- $- Not
contaminated recyclables for non-collection and Implemented
conduct waste audits to increase commercial
rec clin .
62 Identify opportunities and arrange for commercial $- $- Not
food composting. Implemented
63 Establish and enforce additional charges for $- $- Not
rejected recycling loads. Implemented
64 Direct drivers not to collect contaminated $- $- Not
commercial recycling bins. Implemented
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Management Study of the Integrated Waste Management Division
Exhibit 5 (5)
Cost Cost Implementation
Recommendation Increase Decrease Status
65 Hold drives accountable for overweight loads, $- $- Partially
missed collection, and driver-caused damages. Im lemented
66 Retrain drivers to follow established procedures on $- $ Not
issuing non-collection notices, Standing Work Implemented
Orders, and completing their daily logs.
67 Reduce vehicle spare ratios to 10%. $- $75,000 Not
----Implemented
Temporary Service
68 Purchase and install GPS software and tracking $- $- Not
devices for all temporary collection vehicles(both Implemented
roll-off and front loaders).
69 Require all customers requesting temporary $- $- Not
services to the Customer Service Representatives Implemented
to request service.
70 Restrict temporary services to construction and $ $ Not
demolition materials, and clean-ups.Temporary Implemented
services should not be provided for regular
scheduled collection of garbage.
71 Base Temporary Services on a one (1)week service $ $ Not
period. One (1)additional week"bin"rental can be Implemented
requested at a set fee. All temporary drops must be
pulled weekly, unless the customer requests a one
time one (1)week extra bin rental.
72 Track all activity by drivers by Service Request $- $- Not
Orders and account number on a daily driver activity Implemented
to .
73 Enter all temporary services into the new software $ $ Not
system. Implemented
74 Audit all permanent accounts and accounts serviced $- $ Not
on the short-term (over seven days)and on call Implemented
basis to verify account information, bins on-site, and
indentify diversion opportunities. Permanent
scheduled accounts should be allocated on a
regular route basis, so that temporary services do
not conflict with permanent collections.
75 Establish a procedure for monitoring compactor $- $ Not
loads with high concentrations of recycling and Implemented
organics material, including a transfer station floor
sort procedure and accounting.
76 Work with local recycling facilities to receive $- $ Not
additional material that current drivers or Implemented
supervisors think are "contaminated"and must go to
the landfill.
77 Require the Roll-Off supervisor and I or Commercial $- $75,000 Not
Account Supervisor to review any loads dispatched Implemented
as"recycling"loads that the driver feels are
contaminated before the material is hauled to the
landfill.
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Management Study of the Integrated Waste Management Division
Exhibit 5 (6)
Cost Cost Implementation
Recommendation Increase Decrease Status
78 Reduce spare vehicle ratios to 10%. $- $- Not
Implemented
FY 2008-09 Budgets and Customer rates
79 The FY 2008-09 budget should incorporate the $- Partially
cost to purchase and install an Integrated $1,299,750 Implemented
Customer Information System including residential
and commercial account audits; software for
account management, billing, routing, dispatching
and reporting; collection vehicle on-board GPS
route and account tracking.
80 The FY 2008-09 budget should incorporate capital $- $- Partially
replacement for residential containers, residential Implemented
collection vehicles, commercial containers,
commercial collection vehicles, and street
sweepers.
81 The FY 2008-09 budget should include a 5% $- $- Not
capital reserve increasing to 10% by FY 2013-14. Implemented
82 The FY 2008--09 budget should include a 5% $- $- Not
operating reserve increasing to 10% by FY 2013- Implemented
14.
83 The FY 2008-09 budget should incorporate the $150,000 $- Not
cost to begin a feasibility study for a Corporation Implemented
Yard/MRF/Transfer Station.
84 The FY 2008-09 budget should incorporate the $300,000 $- Not
cost to implement aggressive public outreach Implemented
programs and enforcement.
85 The FY 2008-09 budget should incorporate the $100,000 $- Not
cost to conduct a detailed cost of service study to Implemented
establish accurate rates for each line-of-business
starting in FY 2009-10.
86 Customer rates should be revised to reflect $- $- Partially
recommendations 78 through 84; discontinue bin/ Implemented
box rental beyond one week; adopt"flat'tonnage
limits of 2 tons for temporary bins; adopt"free"
recycling for residential and commercial
customers; reassign five"extra"commercial
drivers to residential services; discount
commercial green waste by 50%from standard
garbage bin rates; charge full garbage rates for
contaminated recycling or green waste loads;
implement separate street sweeping charges on
residential and commercial customers; and
increase rates for residential, commercial and
temporary service on an"across the board"basis
for FY 2008-09.
Matrix Consulting Group Page 46
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 5 (7)
Cost Cost Implementation
Recommendation Increase Decrease Status
87 For FY 2009-10, adopt"pay as you throw"rates $ $ Not
for residential and commercial customers to Implemented
provide incentives for recycling, and transition to
line-of-business rates.
88 The City should increase the number of $568,800 $- Not
authorized positions in the Integrated Waste Implemented
Management Division by ten (10)positions
including 5 residential drivers, 1 residential
supervisor, 2 public education staff, 1 customer
service representative, 1 residential dispatcher/
customer service representative, eliminate 5
commercial drivers add 1 commercial supervisor,
add 1 commercial regular public education staff,
add 2 commercial regular account supervisors,
and add 1 commercial dispatcher
89 The City should conduct an analysis necessary $100,000 $ Not
to balance residential and commercial routes Implemented
Privatization/Managed Competition
90 The City should not consider the privatization of $- $- Implemented
the services delivered by the Division.
TOTAL $2,518,550 $6,065,000
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
4. DIAGNOSTIC APPRAISAL OF THE INTEGRATED
WASTE MANAGEMENT DIVISION
This chapter presents an assessment of the current practices of the Integrated
Waste Management Division in terms of strengths and opportunities for improvement.
To make this assessment, the Matrix Consulting Group utilized a set of performance
measures or "best management practices." The measures utilized have been derived
from the project team's collective experience and represent the following ways to
identify departmental strengths as well as improvement opportunities:
• Statements of "effective practices" based on the study team's experience in
evaluating operations in progressive procurement operations and / or "industry
standards" from research organizations.
• Identification of whether and how the procurement practices in place at the Santa
Clara Valley Water District meets the performance targets.
The purpose of the diagnostic assessment was to develop an overall assessment of the
Division. This assessment is presented in the exhibit following this page.
Matrix Consulting Group Page 48
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (1)
Diagnostic Appraisal of the
Integrated Waste Management Division
Potential Improvements I
Performance Tar et Stren he Action Needed
Administration
1. Solid waste collection and Solid waste collection and Two functions that are funded
recycling is administratively recycling has been centralized within the Refuse Fund are
centralized to capture economies of within the Integrated Waste organizationally located
scale. Management Division. outside the fund: street
sweeping and right-of-way
maintenance.
2. Polices and procedures are Written policies and
well documented. procedures regarding
management controls, general
operations, collection work
practices, etc. are not well
documented.
3. A formal skills assessment A formal skills assessment and
and training plan has been developed training plan has been
to keep employees current with developed for each employee
changes in the solid waste collection in the Division.
and recycling rofession.
4. Effective safety procedures Effective safety procedures are Few employees in the Division
are in place. in place. Integrated Waste has seem aware of the Safety and
developed a Safety and Procedures Manual or the
Procedures Manual.The Injury and Illness Prevention
Division has also developed an Program manual.
Injury and Illness Prevention
Pro ram manual.
5. An effective program is in The City has developed an The number of liability claims
place to hold employees of the accident prevention committee. has declined from 49 in 2005-
Division accountable for liability Employees are held 06 to 38 in 2007-08. However,
claims. accountable, and disciplinary the cost of liability claims has
action taken if warranted. not varied much ranging from
$77,300 to$88,100 over this
three- ear period.
6. A formal quality assurance A formal quality assurance
process is in place that includes process is not in place.
periodic review of solid waste
collection work practices and
monitoring of missed collection rates.
7. The Integrated Waste The Integrated Waste
Management Division has developed Management Division has not
goals, objectives, and performance developed goals and
measures have been developed to objectives.
define what resources ought to be
allocated to what services.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (2)
Potential Improvements/
Performance Target Strengths Action Needed
87 formal performance A"productivity"report is Some of the data contained
measurement system is in place to generated on a weekly basis within the"productivity"report
track the effectiveness of service that identifies the number of is incomplete or incorrect.
outcomes, and performance levels containers collected and tons
compare reasonably well to industry collected per route for"line of
benchmarks. business."
9. The Division has developed The Division has not
performance standards for all of its developed performance
operations and employees. Examples standards for all of its
of performance standards will vary operations and employees.
from operation to operation but
should include categories such as
efficiency/productivity, safety,
customer service, etc.
10. The Division maintains and The Division contracted with The business plan is largely
publishes a clearly written, multi-year the R3 Consulting to develop a unimplemented. The Division
(five years at a minimum)business business plan. has not developed a plan of
plan to provide vision and direction implementation for the
for the Division's effort. recommendations contained in
the Business Plan.
11. Annual surveys are Annual surveys are not
conducted to assess customer conducted to assess customer
satisfaction. satisfaction.
12. The number of organizational The number of layers amounts
layers does not exceed four(the to three.
number of layers that one employee
would have to report to reach the
Division Manager).
12. The span of control for The span of control for the The span of control for the two
managers and supervisors Commercial Roll-Off (2) Residential Supervisors
approximates eight to twelve routes. Supervisor amounts to seven amounts to fourteen (14)
(7)routes. The span of control routes each.
for the Commercial Front-End
Loader Supervisor is twelve
12 routes.
13. An effective employee Generally, employees receive Employees are being denied
performance management system performance appraisals every their merit increases without an
has been created twelve months. explanation from their
su ervisor.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (3)
Potential Improvements I
Performance Target Strengths Action Needed
Financial Systems and Policies
14. An enterprise fund is in place An enterprise fund is in place
for solid waste collection and for solid waste collection and
disposal. disposal.
15. The Division has developed The Division has not
five-year financial plan that identifies developed five-year financial
projected revenues, expenditures plan.
including capital outlay, and the rates
necessary to support the fund.
16. The Refuse Fund has The Refuse Fund has not
established a replacement reserve to established an equipment
insure the timely replacement of truck replacement reserve.
and vehicle assets.
17. The current ratio for the solid
waste enterprise fund is not less than
2.0.
18. The debt to total assets ratio
is less than 0.5.
19. The debt to equity ratio is
less than 0.5.
20. Residents and businesses Residents and businesses are The City does not reimburse
are charged for solid waste collection charged for solid waste the Refuse Fund for solid
and disposal. collection and disposal waste collection services
received b the City.
21. Solid waste collection and
disposal rates promote cost
recognition and waste control.
22. Solid waste collection and Solid waste collection and
disposal rates are empirically disposal rates are not
calculated and updated on at least an empirically calculated and
annual basis. updated on at least an annual
basis
23. The solid waste collection
rates charged by the City are
competitive with their neighboring
cities.
24. The Division documents its The Division does not
operating costs by line-of-business document its operating costs
(residential trash collection, by line-of-business.
commercial front-end loader
collection, commercial roll-off
collection, etc.).
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (4)
Potential Improvements
Performance Target Strengths Action Needed
25. On an annual basis,the The Division does not conduct
Division conducts billing and route billing and route audits for all
audits for all customer classes to customer classes to obtain
obtain accurate data regarding its accurate data regarding its
customer base.Audits of the customer base.
residential solid waste services
include information such as total
number of customers, containers and
senior discounts. For commercial
services, the audits include the total
number of customers and containers.
Customer Service
26. Utility billing is Utility billing is not
administratively centralized to capture administratively centralized to
economies of scale. capture economies of scale.
27. Customer Services has Customer Services has not
developed a policies and procedures developed a policies and
manual. procedures manual.
28. Customer Services has Customer Services has
developed financial management developed financial
policies. management policies.
29. Customer Services generates Customer Services does not
monthly performance reports that generate monthly performance
include comparisons of planned reports
versus actual revenue.
30. Customer Services provides Customer Services does not
financial analysis and planning provide financial analysis and
capability consistent with the planning.
Division's current and long range
needs
31. Customer Services provides Customer Services does not
regular, ongoing financial reports are provide regular, ongoing
provided to departmental financial reports to
management and supervisors. management.
32. Effective collection Effective collection procedures
procedures have been put in place. have not been put in place.
33. There is a formal written There is not a formal written
policy regarding collection of policy regarding collection of
delinquent accounts. delinquent accounts.
34. Customer Services regularly Customer Services does not
analyzes the average age of regularly analyze the average
accounts receivable to ascertain age of accounts receivable.
opportunities to enhance the
effectiveness of collection.
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Management Study of the Integrated Waste Management Division
Exhibit 6 (5)
Potential Improvements
Performance Target Strengths Action Needed
35. Customer Services conducts Customer Services does not
an annual cost of service study that conduct an annual cost of
includes rate allocation and changes service study that includes rate
by class of service allocation and changes by
class of service.
36. Customer Services effectively Customer Services does not
utilizes the utility billing software for effectively utilize the utility
accurate and timely billing of refuse billing software.
accounts.
37. Customer Services effectively Customer Services does not
uses technological tools (HiPath use technological tools.
ProCenter Composer I Observer)to
track and monitor calls, system
availability, and system reliability for
call centers stems like the IVR, etc.
38. Customer Services has Customer Services has
developed and deployed a First Call developed and deployed a
Resolution program. First Call Resolution program.
39. Customer Services has Customer Services has not
developed and deployed a quality developed and deployed a
assurance I quality compliance quality assurance I quality
program. Compliance program.
40. The %of abandoned calls is The%of calls abandoned in
3%to 6%. 2009 amounted to 10.6%.
41. 70%of the calls are This data is not available.
answered in 20 seconds or less.
42. Customer Services utilizes Customer Services utilizes
electronic bill presentment and electronic bill presentment and
presentation (on-line bill payment via presentation.
the customers bank).
42. Customer Services call Customer Services receives a
center agents handle an average of total of approximately 132 calls
90 calls per agent per day per 9-hour per day(excluding abandoned
work day. calls). It allocates six(6)
Customer Service
Representatives to handling
calls.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (6)
Potential Improvements I
Performance Target Strengths Action Needed
43. The Refuse billing and The Division allocates nine(9)
customer services staff approximates positions to customer service
4,000 to 7,000 accounts per full-time and billing.The Division serves
equivalent. approximately 43,500
residential customers and
3,500 commercial customers.
However, approximately 85%
of these customers are served
by the Water Department's
Customer Service
Representatives. Only 15%are
served by the Division's
Customer Service
Representatives or
approximately 7,0000
accounts.
Solid Waste Collection
43. The Division uses electronic The Division does not use
routing software to(1)create routes electronic routing software.
based on actual street network maps,
(2)Account for side-of-street service
collection constraints, vehicle
capacities, compaction ratios and
landfill trips when creating routes, (3)
provide a computerized operating
plan to optimize collection vehicle
efficiency, (4)balance and
consolidate routes and integrates
new accounts/territories, and (5)
Prints detailed driving directions and
maps of collection areas as well as
individual routes
44. The Division has developed The Division has not
and implemented container developed and implemented
replacement policies. container replacement policies
45. Residential trash, yard waste, Residential trash,yard waste,
and recycling is collected with and recycling is collected with
automated side loaders using 1- automated side loaders using
person crews. t-person crews.
46. The replacement cycle or The replacement cycle used One third of the automated
useful life used for the automated for automated side loaders is side loader fleet exceeds the
side loaders approximates seven (7) seven (7)years. replacement cycle. Only two
years. 2009 automated side loaders
are in the fleet and only one
2008 automated side loader.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (7)
Potential Improvements/
Performance Target Strengths Action Needed
47. The average age of the The average age of the fleet is
automated side loader fleet is one- 5.4 years. The age of one-third
half the replacement cycle or three of the fleet exceeds 9 years.
and one-half(3.5)years. Only 25 automated side
loaders are less than 7 years if
age; there are 28 residential
trash, recycling, and green
waste routes.
48. The spare ratio used for The spare ratio for automated
automated side loaders approximates side loaders is 36%.
20%to 25%.
49. The Integrated Waste The Division uses a 4/ 10 work
Management Division uses a 4/ 10 schedule for the collection of
work schedule for the collection of residential trash,yard waste,
residential trash, yard waste, and and recycling.
recycling.
50. The route size of residential The median number of
trash,yard waste, and recycling residential trash containers
collection is 875 to 1125 containers collected for the four-week
for a 10-hour workday. sample amounted to 800
containers per route.This is
91%of the lower end of the
range of the benchmark for
route sizes for residential
trash containers.
The median number of
recycling trash containers
collected for the four-week
sample amounted to 753
containers per route. This is
86%of the lower end of the
range of the benchmark for
route sizes for recycling
trash containers.
The median number of
green waste trash
containers collected for the
four-week sample
amounted to 643 containers
per route. This is 73%of the
lower end of the range of
the benchmark for route
sizes for green waste trash
containers.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (7)
Potential Improvements/
Performance Target Strengths Action Needed
51. The number of staff allocated Given current route sizes for If the staff allocated to
to residential trash, yard waste, and residential trash, recycling, and residential trash, yard waste,
recycling collection is appropriate green waste collection, a total and recycling met the lower
given the workload and level of of 33 operators would be end of the range of the
service. required. This compares to 34 benchmark for route sizes, a
authorized positions. total of 25 operators would be
required. This compares to 34
authorized positions.
52. Commercial front loader Based upon a five-week 9 of the 12 commercial front
waste is collected using 1-person sample in June and July 2009, loader routes are collected
crews. route C-4 uses a 1-person using 2-person crews.
crew for 92% of the collection
days Monday through Friday,
route C-3 uses a 1-person
crew for 68%of the collection
days Monday through Friday,
and route C-2 uses a 1-person
crew for 24% of the collection
days Monday through Friday
53. The route size of commercial Based upon a four-week
front loaders is 120 containers and sample, the median route size
725 cubic yards collected for an 8- for commercial front loaders
hour workday. was 128 containers.
54. The replacement cycle or The replacement cycle used 57% of the commercial front
useful life used for the commercial for commercial front loaders is loader fleet exceeds the
front loader approximates seven (7) seven (7)years. replacement cycle. Only nine
years. commercial front loaders are in
the fleet with an age less than
7 years.
55. The average age of the The average age of the fleet
commercial front loader fleet is one- exceeds the replacement
half the replacement cycle or three guideline. The average age of
and one-half 3.5 ears. the fleet is 7.3 years.
56. The spare ratio used for The spare ratio is 75%.
commercial front loader approximates
20%to 25%.
57. Commercial roll off waste is Commercial roll off waste is
collected using 1-person crews. collected using 1-person
crews.
58. The route size of commercial Based upon a four-week
roll offs is 10 containers for an 8-hour sample,the median number of
workday. containers collected per route
was five(5).
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (8)
Potential Improvements I
Performance Target Strengths Action Needed
59. The commercial roll off crews The commercial roll off crews
use a four-way"switch out'method travel to each container site
for collecting roll off containers. twice: once to collect the
container to take the container
to the landfill, and the second
time to bring the empty
container back to the site.
60. The replacement cycle or The replacement cycle or 15%of the commercial roll off
useful life used for the commercial roll useful life used for the trucks exceeds the
off trucks approximates ten (10) commercial roll off trucks replacement cycle.
ears. approximates ten 10 ears.
61. The average age of the The average age of the
commercial roll off fleet is one-half commercial roll off fleet is 7.5
the replacement cycle or five(5) years.
ears.
62. The spare ratio used for The spare ratio used for
commercial roll off fleet approximates commercial roll off fleet is 86%.
20%to 25%.
64. The trash tonnage collected The trash tonnage collected for In some instances,the tonnage
within collection vehicles meets legal residential and commercial roll collected by commercial front
limits. off vehicles is consistently loaders exceeds legal limits. In
within the legal limits. some instances, this results
from operators not collecting
this tonnage in 2 loads.This is
a particular problem for route
C-1.
64. Vehicle availability(versus in The vehicle availability for the The vehicle availability for the
the shop for repairs)approximates commercial front loader fleet commercial roll off fleet
80%to 90%. approximates 80%. approximates 60%. The
vehicle availability for the
automated side loader fleet
approximates 70%to 75%.
65. Fleet Services provides a Fleet Services provides a
dedicated refuse vehicle"line"for the dedicated refuse vehicle'line".
maintenance and repair of the refuse
vehicle fleet.
66. Fleet Services uses a swing Fleet Services uses a swing
shift for the maintenance and repair shift for the maintenance and
of refuse collection trucks. repair of refuse collection
trucks.
Recycling
67. The City meets the AB 939 The City meets the AB 939
recycling requirements set by the requirements. Over the past
State. ten years, the diversion rate
has increased from 44%to
54%.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Exhibit 6 (8)
Potential Improvements I
Performance Target Strengths Action Needed
68. The contamination rate for Based upon a sample in July
recyclable materials is less than 5%. 2009 of three collection
vehicles,the contamination
rate was 24.5%.
69. Single stream recycling is Single stream recycling is used
used for collection of curbside for collection of curbside
recyclables from residences using a recyclables
single,fully commingled cart, later
separated and processed into
marketable commodities.
70. The Division has provided The Division has provided
residents with 90-gallon carts for residents with 90-gallon carts.
collection of curbside collectables.
71. The City has adopted a The Integrated Waste The City has not adopted a
construction and demolition debris Management Division is in the construction and demolition
recycling ordinance. process of developing a debris recycling ordinance.
construction and demolition
debris recycling ordinance. For
the consideration of the City
Council.
72. Waste reduction efforts have The Division conducts a mass The Division has not yet
been focused on programs that mailing twice a year to educate developed effective education
educate businesses and residents. the public regarding recycling. programs for businesses and
The Division has enhanced its residents.
web site to expand the
information regarding
recycling.
73. On-site waste assessments The Division does not provide
and technical assistance are offered on-site waste assessments
to businesses to provide a service- and technical assistance.
oriented approach to waste reduction.
74. The Division has developed The Division has developed
and deployed a curbside collection and deployed a program to
program to collect yard waste from collect yard waste.
residences.
75. Yard waste reduction efforts Yard waste reduction efforts
have been focused on programs that have not been focused on
educate residents on reducing and programs that educate
properly managing yard wastes, and residents on reducing and
also develop landscape practices properly managing yard
which reduce or eliminate the types of wastes.
and waste in need of management.
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Management Study of the Integrated Waste Management Division
Exhibit 6 (8)
Pot4dwellings. ments I
Performance Tar et Strengths ed
76. The Division works effectively The Division is initiating a
with the unified school system to program to work with the
educate children regarding recycling. unified school system such as
integrating zero waste into the
school curriculum.
77. The Division provides The Dt provide
recycling services for multi-family recycli multi-
dwellings. family
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Management Study of the Integrated Waste Management Division
5. ANALYSIS OF INTEGRATED WASTE
MANAGEMENT DIVISION FINANCIAL POLICIES AND
PRACTICES
This chapter presents an analysis of the financial policies and practices of the
Integrated Waste Management Division. The analysis includes all facets of the financial
systems and policies including the administration of the Refuse Fund, the development
solid waste collection rates, long-term financial planning, and the auditing of containers
for each route.
1. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP A
FIVE-YEAR FINANCIAL PLAN FOR THE REFUSE FUND.
The Integrated Waste Management Division, until its recent rate increase,
struggled with the challenge of balancing limited resources with demands for service.
Even now, the projected year-end Refuse Fund balance amount to 3.2% of the fiscal
year 2009-10 expenditures.
If the Division continues that to be wholly dependent on short-term budgeting —
one fiscal year at a time — it may be inviting another financial predicament such as it
suffered in the past. Financial management has become a problem for solid waste
collection divisions that have not adopted a long-term financial planning process that
allows for the analysis of future trends and events as they relate to fiscal impact, rates,
and budget adoption.
The Government Finance Officers Association recommends that all governments
regularly engage in long-term financial planning.
A long-term financial plan should include these elements.
• Time Horizon. A plan should look at least five years into the future.
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Management Study of the Integrated Waste Management Division
• Scope. A plan should include all aspects of the Refuse Fund.
• Frequency. The long-term financial plan should be updates not less than once
every two-years to provide direction to the budget process, though not every
element of the long-range plan must be repeated.
• Content. The plan should include an analysis of the financial environment,
revenue and expenditure forecasts, debt position and rate analysis, strategies for
achieving and maintaining financial balance, and plan monitoring mechanisms,
such as scorecard of key indicators of financial health.
• Visibility. The City Council should be presented with the results of the long-term
financial plan the Refuse Fund and strategies for financial balance.
The Integrated Waste Management Division should develop a five-year financial
plan.
In developing a five-year financial plan, the Division needs to complete the steps
noted below.
• Baseline Assessment
— Review of trends - revenues, expenditures, demographics
— Review of service levels and mandates (e.g., AB 939)
— Review of debt levels and capital outlay needs
— Assessment of key budget drivers, risks, and liabilities
— Development of "as-is" multi-year financial model
• Initiatives Development
Identification of goals and targets beyond baseline (services, revenue
policies, reserves)
Development of gap closing "initiative" options and strategies including
rate adjustments if necessary
Long-Term Financial Plan and Report
Integration of targets and initiatives into balanced framework
Financial model and communications document
Projected demographics for solid waste collection (i.e., growth in the
number of customers by class of customer, annexations, etc.)
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Management Study of the Integrated Waste Management Division
— Expenditures projected for the Division including salaries and benefits,
services and supplies, and capital outlay, broken down by line-of-business
or class of customer
— Revenue projected for the Division broken down by line-of-business or
class of customer
— Reserves projected for the Division by type of reserve
— Rates required to support the expenditures in the five year financial plan
broken down by line-of-business or class of customer
— Implementation plan for initiatives
— Metrics for monitoring progress, inclusive of timeline
The Government Finance Officers Association has a wealth of resources for the
preparation of financial plans. These resources may be found at this web site address:
http://www ofoa org/index php?option=com content&task=view&id=360&Item id=186.
The Administrative Analyst II assigned to the Public Services Department should
be assigned responsibility for the preparation of this five-year financial plan. One-half of
this position is budgeted in the Integrated Waste Management Division.
Recommendation #9: The Integrated Waste Management Division should prepare
a five-year financial plan in calendar year 2010.
Recommendation #10: The five-year financial plan for the Integrated Waste
Management Division should be presented to the City Council for its
consideration and adoption.
Recommendation #11: The Administrative Analyst II assigned to the Public
Services Department should be assigned responsibility for the preparation of this
five-year financial plan.
2. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP
AND ADOPT FINANCIAL POLICIES IN THE DEVELOPMENT OF THE FIVE-
YEAR FINANCIAL PLAN FOR THE REFUSE FUND.
The development of the five-year financial plan should be guided by financial
policies for the Refuse Fund. These policies should be used to frame major policy
initiatives and be summarized in the five-year financial plan.
Examples of possible financial policies for the Refuse Fund are presented below.
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Management Study of the Integrated Waste Management Division
• The City shall maintain, conduct, operate and account for the collection, recycling
and disposal of solid waste as a utility of the City. The solid waste system shall
be a self-supporting utility financed through fees.
• The City shall charge fees directly to users of the solid waste collection, recycling
and disposal system to pay for solid waste services.
• Each class of customer (residential, commercial front loader, commercial roll-off,
etc.) shall be self-supporting in terms of revenues and expenditures. One class of
customers shall not subsidize another class of customers.
• The City should keep solid waste collection, recycling and disposal fees as low
as possible and should manage the solid waste system to keep rate increases as
low as possible while meeting the costs of managing the system and providing
service to solid waste customers.
• The Refuse Fund shall include a sub-fund to accumulate financial resources for
the replacement of solid waste roiling stock on a timely and economic basis.
• To stabilize the impact of equipment purchases on the operating fund. Annual
contributions shall be made from the operating sub-fund in the Refuse Fund even
though the cost of required equipment replacements could vary significantly from
year to year.
• A minimum fund balance for the operating sub-fund of the Refuse Fund shall be
maintained to meet or exceed 45 days of expenditures adjusted for fund transfers
and debt service.
The Integrated Waste Management Division should develop these financial
policies in consultation with the Finance Department. These financial policies should be
developed in concert with the development of the five-year financial plan. These
financial policies should include such aspects as balancing revenues and expenditures,
long-range planning, asset management (the fleet and containers), revenue, and
expenditures.
Recommendation #12: The Integrated Waste Management Division should
develop financial policies to guide the development of the five-year financial plan.
These financial policies should be developed during 2010.
Recommendation #13: The Integrated Waste Management Division should
develop these financial policies in consultation with the Finance Department.
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Recommendation #14: These financial policies should be developed in concert
with the development of the five-year financial plan.
Recommendation #15: These financial policies should include such aspects as
balancing revenues and expenditures, long-range planning, asset management
(the fleet and containers), revenue, and expenditures.
3. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD SEPARATE
THE REVENUES AND COSTS OF THE SERVICES THE DIVISION PROVIDES
BY SERVICE CATEGORY.
The Business Plan developed by the R3 Consulting Group recommended that
the Integrated Waste Management Division establish separate budgets within the
Division on a "line-of-business" basis including the following:
Residential;
• Commercial Front Loader;
• Recycling operations;
• Commercial Roll Off;
• Street sweeping; and
• Right-of-way services.
The revenues and expenses would be accounted for within each "line-of-
business". This would include lease payments, capital purchases, tipping fees,
reserves, etc. The rate structure should be developed so that each 'line-of-business" is
self-supporting.
The separation of the revenues and expenses into these different 'lines-of-
business" is an essential step in the development of rates for each class of customers.
To determine the costs for each service, there is a need to allocate costs to service
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categories that represent the primary solid waste services provided. The services
should be functionalized into the following seven service categories:
• Residential trash, yard waste, and recycling collection;
• Uncontained or bulk collection;
• Recycling Operations;
• Commercial front loader trash and recycling collection;
• Commercial Roll-Off Collection;
• Street sweeping; and
• Right-of-way services.
Identification of the total costs associated with each service category was a
critical step in determining adequate rates that reflect the cost of providing service.
These costs were isolated by service category in order to fully recover the total revenue
requirement by matching those customers that utilize the service with the actual costs
associated with that service.
The allocation of expenditures and revenues assists in identifying the appropriate
customers to be charged for each service provided.
The following table identifies how the service categories should be grouped and
the recovery basis for each service category.
Service Category Recovery Basis
Residential trash collection Residential rate
Uncontained bulk collection Residential rate
Residential yard waste collection Residential rate
Residential recycling collection Residential rate
Commercial front-load collection Commercial front-load rate
Commercial roll-off collection Commercial roll-off rate
Commercial recycling collection Commercial front-load rate
Street Sweeping Residential rate, Commercial front-load rate,
Commercial roll-off rate
Recycling operations Residential rate, Commercial front-load rate,
Commercial roll-off rate
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Service Cate o Recovery Basis
Right-of-way services Residential rate, Commercial front-load rate,
Commercial roll-off rate
The Integrated Waste Management Division should separate its revenues and
expenditures based on the primary services provided by the Division. This should
include residential trash, yard waste, and recycling collection; uncontained or bulk
collection; recycling operation; commercial front-loader trash and recycling collection;
commercial roll-off collection; street sweeping; and right-of-way services.
Recommendation #16: The Integrated Waste Management Division should
separate its revenues and expenditures in the Division's budget based on the
primary services provided by the Division. This should include residential trash,
yard waste, and recycling collection; uncontained or bulk collection.; recycling
operation; commercial front-loader trash and recycling collection; commercial
roll-off collection; street sweeping; and right-of-way services.
4. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD CONTINUE
TO USE DEBT FINANCING TO REPLACE ITS EQUIPMENT.
The Business Plan developed by the R3 Consulting Group recommended that
the Integrated Waste Management Division establish a capital acquisition reserve
account of 10% for planned future needs.
The City has expended significant amounts of money over the past few years to
replace the Division's fleet. This is reflected in the increasing debt cost for the Division
in the table below. As the table indicates, the debt cost has risen from $1.5 million in
2006-07 to $2.7 million in 2009-10.
2006-07 2007-08 2008-09 2009-10
$1,533,552 $1,134,955 $1,858,967 1 $2,726,800
Solid waste collection vehicles should be replaced at various points in their
service lives depending on the type of vehicle, the nature and intensity of its use, and
various other factors. Timely replacement is important for controlling vehicle availability,
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safety, reliability, and efficiency. The often
reported economic theory of vehicle
replacement holds that vehicles should be
replaced when the sum of ownership and
operating costs is at its lowest historical
point. The chart below, which shows three
cost curves, illustrates this concept. The capital cost curve shows the decreasing cost
over time of a fleet asset as it ages and depreciates. The operating cost curve
illustrates the increasing maintenance, repair, and fuel costs for the same asset over its
life cycle. The total cost curve combines the two. The optimal point at which to replace
this asset from an economic perspective is when the "total cost" curve is at its lowest
point on the Time/Usage axis. That is, when the combined cost of owning and
operating the unit is at a minimum, just before it begins to increase.
As can be seen in this illustration, the bottom of a vehicle's total life cycle cost
curve is relatively flat. This means, in practical terms, that there is not a single point in
time at which a vehicle should be replaced. Rather, there is a period of time during
which the combination of capital and operating costs are at or near their lowest point.
Depending on how old a vehicle — or a fleet — is, delaying its replacement somewhat
may or may not have a material impact on the total life cycle cost of that vehicle or fleet.
There are three basic approaches available to organizations for financing the
costs of replacing fleet assets: cash (pay-as-you-go), savings, and borrowing.
The major drawback of cash (pay-as-you-go) financing is that it makes year-to-
year fleet replacement funding requirements volatile and somewhat unpredictable
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because the long-term replacement spending requirements of most fleets are inherently
and unavoidably lumpy.
Fortunately, there are two widely used fleet replacement financing approaches
that allow government jurisdictions to spread out the capital costs of vehicles over their
useful lives. These two approaches make year-to-year replacement funding
requirements relatively smooth and predictable, thereby reducing the likelihood that
critical replacement purchases will be deferred and that a backlog of replacement
spending needs will develop. Those two methods are savings (via a reserve fund) and
borrowing.
One of the challenges of the use of savings is that of managing a reserve fund
properly and calculating charge-back rates so that the reserve fund balance does not
get too big or too small. Many government jurisdictions with which the Matrix
Consulting Group has worked in this area have built up unnecessarily large fund
balances due to improper rate setting and/or an incomplete understanding of how a
reserve fund should operate. The other challenge with the use of a reserve fund is that
they are almost prohibitively expensive to establish if there already is a large backlog of
fleet replacement needs and / or there is no cash set aside for replacement. This is
because a large amount of cash must be deposited in the fund up-front, or internal
replacement rates must be set artificially high, to supply the working capital needed to
start purchasing replacement vehicles.
The other alternative, borrowing, uses a method in which the purchase of every
vehicle and piece of equipment in the fleet would be financed over a period of years,
preferably slightly less than the weighted average life expectancy (i.e., replacement
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cycle goal) of the various types of assets in this particular fleet. Like a reserve fund,
lease purchasing makes replacement funding requirements smooth and predictable by
spreading the capital cost of each vehicle in the fleet over its useful life.
Future funding requirements not only are smoother under a lease purchasing
approach, but substantially lower over the first several years as well. This reflects the
fact that switching from cash to debt financing allows an organization to defer much of
the cost of a new vehicle to future years. This contrasts with the requirement, under a
cash financing approach, that the entire cost of a new vehicle be paid in the year in
which it is acquired. Thus, for example, financing the purchase of a $140,000 vehicle
over 7 years requires an annual funding requirement of $20,000 for each of the 7 years,
rather than $140,000 in the first year followed by $0 III the next v.
Rather than accumulating reserves to pay for vehicles, this approach involves
borrowing money from the capital markets and repaying it after vehicles have been
placed in service.
One of the perceived disadvantages of this financing approach is the cost of
borrowing money; i.e., real or imputed interest charges. There is a perception among
many people that it is fiscally irresponsible to use debt to finance the purchase of fixed
assets such as vehicles that are "used up" relatively quickly. There is no question that
interest charges increase the total purchase price of a vehicle. However, to the extent
that debt financing enables an organization to replace vehicles that it otherwise would
keep in service for excessive periods of time due to its inability to accommodate all fleet
replacement funding requests each year, interest payments may actually result in lower
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vehicle life-cycle costs. In other words, interest expenses may be more than offset by
higher vehicle residual values and lower vehicle operating costs.
Overall, the Division has had an uphill financial battle over the past few years to
replace its obsolete fleet. It has used debt to accomplish that. Much of the fleet that has
been replaced is the same model year. For example, thirteen (13) of the automated side
loaders are four years old and ten (10) are three years old. This would make it
extremely difficult to convert to a replacement fund. Significant amounts of savings
would be required to replace those vehicles.
The Integrated Waste Management Division should continue to use debt
financing until the Refuse Fund reserves are sufficient to enable the development of an
equipment replacement fund.
Recommendation #17: The Integrated Waste Management Division should
continue to use debt financing until the Refuse Fund reserves are sufficient to
enable the development of an equipment replacement fund.
5. THE FINANCE DEPARTMENT SHOULD CONDUCT A SOLID WASTE
COLLECTION COST OF SERVICE STUDY AND UPDATE THE STUDY
ANNUALLY.
The goal of a cost of service and rate design study is to determine the solid
waste fees required to adequately recover the costs of providing services. The process
that should be used for this study are presented below.
• Development of the "Test Year' — The first task in conducting the cost of
service analysis should be the development of an annual revenue requirement
for a 'Test Year'. The revenue requirement represents the total revenue that a
solid waste utility will need to recover during a year in order to fund all expenses
associated with the provision of solid waste services. The Finance Department
should select a period that reflected the typical operation of the solid waste
system. The Finance Department should then review the financial data and work
with the Integrated Waste Management Division staff to make any adjustments to
costs to make them representative of a typical year. The resulting 'Test Year"
should be used as the basis for forecasting expenses from the fiscal year
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beginning July 1, 2010 (FY 2010-11) through FY 2015.
Development of the Revenue Requirement Forecast — After developing the
revenue requirement for the "Test Year", the Finance Department should work
with the Integrated Waste Management Division to project changes in costs due
to inflation, salary increases, new equipment, new customers, etc. This should
result in a five-year revenue requirement forecast.
Allocation of Costs to Service Categories — Next, the Finance Department
should work with Integrated Waste Management Division staff to assign and
allocate costs to various service categories. The service categories represent the
primary solid waste services provided by the Division that comprise the Division
budget.
Allocation to Customer Classes — Then, the Finance Department should group
the service categories based on the customer classes that will recover each
category's costs. The customer classes should include residential trash, yard
waste, and recycling collection; uncontained or bulk collection; recycling
operation; commercial front-loader trash and recycling collection; commercial roll-
off collection; street sweeping; and right-of-way services.
Determination of willing units — The Finance Department should next identify
the appropriate billing units for each customer class. For example, the residential
rate is charged per customer, so the number of residential customers should be
utilized as the billing unit for this customer class.
Calculation of the Cost of Service — Ultimately, the costs for each customer
class were distributed across the appropriate
The City should undertake this study to determine the cost of providing the
various services associated with the delivery of solid waste collection services. This is
required because a fee for a property-related service may not exceed the cost of
providing that service. Likewise, the City may not charge one property-related service
higher rates in order to charge lower rates to another property related service. The
analysis determined should determine if there are any subsidies by one set of property-
based customers of another set of customers in the rate structure that need to be
discontinued.
However, the Finance Department lacks the capacity to conduct this cost of
service study. The Matrix Consulting Group uses a benchmark for staffing of Finance
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Departments in which the staffing fore that department approximates of 2% to 3% of the
total staffing within the City. The Finance Department in San Bernardino is allocated 16
positions; total city-wide staffing amounts to 1,181. Staffing in the Finance Department
amounts to 1.35% of city-wide staffing. To provide support to the Integrated Waste
Management Division in the development of a cost of service study and other financial
support as referenced in the next chapter, an Accountant 1 position should be
authorized for the Finance Department. The annual cost impact of the addition of this
position, in terms of salary at first step and fringe benefits, is presented in the table
below.
Annual Cost Annual Cost
Recommendation Increase Recommendation Decrease
I I I I
An Accountant I position should $64,500 N /A $0
be authorized for the Finance
Department to provide support in
the conduct of a cost of service
study for the Integrated Waste
Management Division and other
financial support to the Division.
Recommendation #18: The Finance Department should conduct a cost of service
study for solid waste collection services in fiscal year 2010-11.
Recommendation #19: The Finance Department should update the cost of service
study for solid waste collection services annually.
Recommendation #20: The City should authorize an Accountant I for the Finance
Department to develop and update the cost of service study and provide other
financial support to the Integrated Waste Management Division.
6. THE DIVISION SHOULD CONDUCT BILLING AND ROUTE AUDITS FOR ALL
CUSTOMER CLASSES TO OBTAIN ACCURATE DATA REGARDING ITS
CUSTOMER BASE.
The Public Services Department is gradually beginning the process of auditing
the number of containers for its residential and commercial routes. Initially, it is
beginning with its commercial routes. These audits are essential for "pay-as-you-throw"
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based rates such as the system used by the City. Without such audits, there could be
the likelihood that customers would be paying less for collection services than the
customer is actually receiving.
For this audit to be effective, two things are critical: first, the count must be
transparent and fully defendable, second, because the count is changing, it must be
easily and economically updated. The City should require that the contractors use
Global Positioning System (GPS) units to produce an audit trail that documents visual
inspection of every residence and business.
The contractor should develop a master refuse collection electronic database,
which should be referenced for customer container counts in the field. The database
should ultimately generate a GiS database of refuse collection points tied to parcels.
The contractor should collect GPS coordinates for each customer container to be
spatially joined to the prospective refuse collection points in the electronic database.
The vehicle of each field surveyor should have a GPS with an external antenna
mounted on the outside of the vehicle and a dashboard interface for triggering the
marking of XY coordinates for each refuse collection point.
The contractor should then develop an accurate, verifiable, and transparent
"Update Procedure" methodology for the master solid waste collection electronic
database that the City can use in the future to update the waste setout database.
Finally, the contractor should produce a report including descriptions of the
survey and verification methodologies, the number of residences and businesses in
each contract area that require service, and instructions for updating the electronic
database. The end result for San Bernardino will be an accurate, updatable database of
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locations receiving waste collection services that will ensure fair and proper billing.
It is imperative that the Integrated Waste Management Division accurately
identifies the actual residential and commercial customer count and corrects the
discrepancy between billing and operational data. On an annual basis, the Division
should conduct billing and route audits for commercial and residential customers and
maintain accurate data regarding its customer base. Audits to the residential solid waste
services should include information such as total number of customers, and number of
containers. For commercial services, the audits should include total number of
customers, number of containers, size of containers, and frequency of collection.
These route audits should be conducted on an annual basis by the Operators to
generate data that would assist the Division in determining if it is under recovering
revenue and accurately identifying cost levels associated with the solid waste services
provided. Ideally, the audit reports would be integrated with the electronic database,
which would provide updated and easily accessible information useful to management's
financial and operational decision-making processes.
Recommendation #21: The Integrated Waste Management Division should
conduct route audits of its commercial and residential customers.
Recommendation #22: The contractor should develop a master refuse collection
electronic database, which should be referenced for customer container counts
in the field. The database should ultimately generate a GIS database of refuse
collection points tied to parcels.
Recommendation #23: The contractor should collect GPS coordinates for each
customer container to be spatially joined to the prospective refuse collection
points in the electronic database.
Recommendation #24: The contractor should develop an accurate, verifiable, and
transparent "Update Procedure" methodology for the master solid waste
collection electronic database that the City can use in the future to update the
waste setout database.
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Recommendation #25: On an annual basis, the Division should conduct billing
and route audits for commercial and residential customers to maintain accurate
data regarding its customer base. Audits to the residential solid waste services
should include information such as total number of customers, and number of
containers. For commercial services, the audits should include total number of
customers, number of containers, size of containers, and frequency of collection.
7. THE CITY SHOULD REIMBURSE THE REFUSE FUND FOR THE
COLLECTION OF SOLID WASTE FROM CITY FACILITIES.
The Business Plan prepared by the R3 Consulting Group noted that the City
receives approximately $400,000 in "free" services that is not accounted for or tracked
in the Integrated Waste Management Division's budget.3
This may present the City with compliance with Proposition 218. Proposition 218
requires that existing, new, or increased fees and charges meet certain requirements,
summarized below (Cal. Const., Article XIII D, Sec. 6):
• Revenues derived from the fee or charge shall not exceed the funds required to
provide the property related service;
• Revenues derived from the fee or charge shall not be used for any purpose
other than that for which the fee or charge was imposed;
• The amount of a fee or charge imposed upon any parcel or person as an
incident of property ownership shall not exceed the proportional cost of the
service attributable to the parcel;
• No fee or charge may be imposed for a service unless that service is actually
used by, or immediately available to, the owner of the property in question and
• No fee or charge may be imposed for general governmental services.
The provision of these "free" services is a potential violation of Proposition 218.
The City should evaluate this potential violation, and take steps to correct this issue.
That should include the payment for the collection of solid waste from City facilities. This
a Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page
12.
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certainly should include enterprise funds such as those of the Water Department, and
the Economic Development Agency.
Recommendation #26: The City should reimburse the Refuse Fund for the
collection of solid waste from City facilities.
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6. ANALYSIS OF CUSTOMER SERVICES
This chapter presents an analysis of Customer Services —the organizational unit
in the Integrated Waste Management Division responsible for solid waste billing,
working with new and existing customers to start and stop solid waste collection
services either in person at City Hall or via the phone, receiving calls from existing
customers regarding missed collections, receiving and processing solid waste collection
service payments from customers, distributing reminder notices for those accounts that
are past due, and monitoring billing system performance and taking timely corrective
action to address system problems, etc. At the present time, the Division "contracts"
with the Water Denartment fnr the billing and collection for approximately 83% of its
43,500 residential customers. The Department charges the Division 2% of the amount
billed for these services.
The Customer Services Section in the Integrated Waste Management Division
bills and collects for the remaining 15% of the residential customers (7,500 customers),
and all of the 3,500 commercial front-loader and commercial roll-off customers.
1. THE INTEGRATED WASTE MANAGEMENT DIVISION AND THE WATER
DEPARTMENT SHOULD DEVELOP A SERVICE LEVEL AGREEMENT
REGARDING THE UTILITY BILLING AND COLLECTION SERVICES
PROVIDED BY THE WATER DEPARTMENT TO THE INTEGRATED WASTE
MANAGEMENT DIVISION.
As noted previously, the Integrated Waste Management Division 'contracts" with
the Water Department for the billing and collection for approximately 83% of its
residential customers. This amounts to approximately 36,000 customers. For this
service, the Water Department changes the Division approximately $17,000 per month
or $204,000 a year.
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This is not an unreasonable fee. If the Division provided these services itself, it
would require approximately five (5) to nine (9) additional Customer Service
Representatives at an annual cost of approximately $250,000 to $450,000 annually (in
terms of salaries and fringe benefits). In addition, the collection rate by the Water
Department is much higher than that of the Integrated Waste Management Division.
However, the Division and the Water Department should develop a written
service level agreement that clarifies the roles and responsibilities in the billing and
collection for solid waste collection services. This service level agreement should
include a number of elements as noted below.
Metrics — This should include critical performance metrics including timely and
effective customer service, billing accuracy, average answer speed to calls, % of
calls abandoned, the collection rate (e.g., 99.6% of biiied revenue), etc.
• Services — This should specify the services that would be provided by the Water
Department for the billing and collection for approximately 85% of its residential
customers.
• Responsibilities — This should specify the responsibilities of the Water
Department and of the Integrated Waste Management Division in the billing and
collection for approximately 85% of its residential customers. These
responsibilities should include the full-range of services from billing inquiries,
missed collections, new customers, termination of customers for non-payment,
etc.
• Compensation — This should identify the compensation that the Water
Department is to receive for providing billing and collection for approximately
85% of its residential customers.
One way to improve customer communication and relations is through the
development of service level agreements. The agreements provide customers with a
better understanding of the range of services offered. They also establish a clear
understanding of how the performance of the Water Department should be judged in the
delivery of billing and collection services for the Integrated Waste Management Division.
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Recommendation #27: The Water Department and the Integrated Waste
Management Division should develop a service level agreement for the provision
of billing and collection services by the Water Department on behalf of the
Integrated Waste Management Division.
2. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD
"CONTRACT" WITH THE WATER DEPARTMENT FOR BILLING AND
COLLECTION OF ALL OF ITS RESIDENTIAL AND COMMERCIAL
CUSTOMERS.
One of the best practices utilized by the Matrix Consulting Group for billing and
collection is that utility billing is administratively centralized to capture economies of
scale.
This is not the case in San Bernardino. The City is operating two independent
utility billing and collection operations: one in the Water Department and the other in the
Integrated Waste Management Division. The Water Department is much more effective
in their billing and collection practices than the Division. The Department has the option
of shutting off the water meter. This provides a stronger incentive for a customer to pay
their bill. The Integrated Waste Management Division has no such incentive. The Water
Department is much more effective at collection with a far smaller debt write-off than the
Division.
While the Division "contracts" with the Department for billing and collection of
residential refuse collection in the area served by the Department, it does not similarly
"contract' for billing and collection of commercial front-loader and commercial roll-off
services.
The Division should "contract' with the Water Department for billing and
collection of commercial front-loader and commercial roll-off services for the remainder
of the City.
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The Matrix Consulting Group recommends that the Division develop an approach
for the payment of this service that better reflects the cost of these services. The Water
Department charges 2% of the amount billed for the billing and collection of residential
refuse services. This seems like a fair approach; it closely resembles the likely cost of
providing this service. This same approach does not seem to closely resemble the likely
cost of providing the billing and collection of commercial front-loader and commercial
roll-off services.
The City should consolidate its utility billing services within the Water Department
including the Integrated Waste Division, and the Water Department should consolidate
the two billing and collection databases within the H.T.E. utility billing module. The
Water Department maintains one database for water and sewer and another database
for residential refuse collection. Each has different account numbers for the same
customer. This requires duplicate data entry for the same customer into the different
databases. These two databases should be consolidated.
At the present time, the Integrated Waste Division is authorized eight (8)
positions for the Customer Services Section. This level of staffing is portrayed in the
table below.
Integrated Waste Customer Service Supervisor 1.00
Lead Integrated Waste Customer Service Representative 2.00
Integrated Waste Customer Service Representative 5.00
Sub-Total 8.00
There are, in addition, two (2) temporary Customer Service Representatives that work
thirty-five (35) hours per week.
The Matrix Consulting Group uses a benchmark of 4,000 to 7,000 accounts per
full-time equivalent for utility billing and collection. (The R3 Consulting Group utilizes a
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benchmark of 6,000 accounts per full-time equivalent).° Given the number of accounts
that are served by the Customer Services Section (7,500 residential customers, and
3,500 commercial front-loader and commercial roll-off customers), the Section should
only require two (2) to three (3) Customer Service Representatives.
The cost savings that would be generated by this recommendation are based
upon a proposal received from the Water Department to provide these services.
• To provide these services, the Water Department would charge the Integrated
Waste Division an additional $142,000 annually.
• The staffing allocated to the Customer Services Section would be eliminated.
Additional changes would also involve a reduction in postage, printing, and bill
inserts, and a reduction of write-offs. The annual cost impact of this
recommendation is presented in the table below.
The "net' savings generated by this consolidation would approximate $519,000
annually. The City should consolidate utility billing and collection in the Water
Department. The cost savings are presented in the table below.
Annual Cost Annual Cost
Recommendation Increase Recommendation Decrease
The Integrated Waste Division $142,000 Eliminate the eight(8)full-time and $558,729
should contract with the Water two (2)part-time positions in the
Department for utility billing and Customer Services Section of the
collection. Inte rated Waste Division.
Eliminate duplicate postage,
printing, and bill inserts $73,000
Reduce Integrated Waste Division
utilitv bill write-offs $30,000
Recommendation #28: The Integrated Waste Management Division should
"contract" with the Water Department for all of its residential and commercial
billing and collection.
Recommendation #29: The Integrated Waste Division should eliminate the
Integrated Waste Customer Service Supervisor position, two Lead Customer
Service Representative positions, five Customer Service Representative
4 Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page 6.
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positions, and two temporary Customer Service Representative positions.
3. THE INTEGRATED WASTE DIVISION SHOULD ENHANCE ITS COLLECTION
PRACTICES FOR REFUSE BILLING.
By a number of measures, the collection practices utilized by the Integrated
Waste Management Division are ineffective. These measures include the:
• Extent of bad debt write-off,
• Limited use of H.T.E. for billing and collection;
• Lack of credit checks for new customers using that information to determine the
amount of deposits;
• Lack of use of a collection agency;
• Lack of use of liens for bad debt;
• Lack of use of the State Tax Franchise Board for bad debt;
• Lack of use of the County Auditor-Controller for bad debt;
• Lack of use of the County Recorder for bad debt; and
• Lack of a reconnect fee for those whose service was discontinued due to non-
payment.
The result of these ineffective practices has resulted in significant amounts of bad debt
write-offs for the Refuse Fund.
The Integrated Waste Management Division should take action to correct these
deficiencies.
(1) The Division Should Expand the Use of Bill Payment Options Other Than
Mail or In-Person Payments By Its Customers.
The Ascent Group, in their publication Billing and Payment Profiles and Best
Practices 2008, noted "the percentage of payments received through electronic means
is growing and slowly displacing the paper check payment. A study by the Federal
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Reserve Bank, NACHA, and the Tower Group noted that check volume is decreasing,
mainly because of the growth in acceptance of alternative payment methods." The
motivation for pursuing these alternative methods is simple: the cost of processing
transactions. The estimated costs of the different types of citizen contacts are as
follows:
• Face-to-face contact: $400;
• FAX/mail: $40;
• Telephone: $12; and
• Internet: $1.
The use of alternative payment options by the Division should be developed,
deployed, and promoted. The District should promote such technologies as Automated
Clearing House, Electronic Bill Presentment and Payment, Electronic Bill Presentment
and Payment„ etc. This should include the use of bill inserts, web site advertising on the
District's web site, not charging a fee for the use of these alternative payment options
(versus a credit card), Call Center agent referrals, IVR messages, television and radio
advertising, etc.
The utility billing software vendor, SunGard H.T.E., offers a front end solution
providing a gateway to customers with interactive web access to utility services and the
ability to pay their utility bills over a secure Internet connection using a credit card.
Recommendation #30: The Integrated Waste Management Division should
develop, deploy and promote alternate payment options by its customers to
include auto withdrawals, internet payment, use of Interactive Voice Response
telephony, and the like.
Recommendation #31 The Integrated Waste Management Division should offer
incentives for automatic payment such as waiving a security deposit in exchange
for choosing automatic bank drafting. Offering such an incentive could help
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customers automatically pay their utility bill on time, and therefore reduce the
likelihood of delinquencies or bad debt accumulation.
Recommendation #32: The Administrative Analyst II should develop a plan to
deploy and promote alternate payment options.
(2) The Integrated Waste Management Division Should Use Credit Scoring To
Determine The Amount Of A Security Deposit and Require a Security
Deposit for those Customers with a Bad Credit Score.
For service establishment, a security deposit is not required. The Division does
not use credit scoring to determine the amount of a security deposit. Credit or risk
assessment definitions are not in place to determine credit-risk categories for
customers.
Credit checking helps develop knowledge relative to a customers risk and can
help determine potential security deposit requirements.
The Integrated Waste Division should implement a formal credit check program
with linked security deposits for all new customers. The use of credit checks and
deposits is common among utilities. For example, the American Public Power
Association, in the 2007 American Public Power Association customer service
benchmarking survey, found that 88% of the respondents required a security deposit for
new residential customers, but that 48% of the respondents waived the requirement for
a deposit for customers having a good credit score with another electrical utility and
27% of the respondents waived the security deposit for those customers with a good
credit score.
Recommendation #33: The Integrated Waste Management Division should
implement a formal credit check program for new customers. The Administrative
Analyst II should develop and deploy the program, and train the Customer
Service Representatives in its use.
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Recommendation #34: The Integrated Waste Management Division should require
a security deposit for those customers with a bad credit score or a bad credit
history at another utility.
Recommendation #35: The Administrative Analyst II should develop a plan to
deploy a formal credit check program for new customers.
(3) The Integrated Waste Division Should Require A Deposit For All Customers
Who Do Not Own Their Property or Should Require That All New Accounts
Be Established In the Name of the Property Owner.
One of the customer classes that suffer a particular problem with bad debt for
solid waste collection are customers that do not own their property. This customer class
is difficult to collect bad debt since there is not property that can be attached.
The Division should address this problem by requiring an account deposit if the
customer is not the owner of the property. This deposit should be non-interest bearing; it
should be credited against the first billing following 12 months of timely payments, or at
the final bill. The amount of the deposit should vary by customer based on the
availability of a one-year billing history.
Another alternative would be to require that all collection service be established
in the name of the property owner. This would hold the property owner accountable for
payment of the collection service, should the tenant fail to pay. The Matrix Consulting
Group recommends that, if the City does not wish to consider a deposit for customers
that do not own the property for which service is provided, that the Division establish a
policy that `owners of rental properties may not establish service in the name of a
tenant, regardless of the terms of their lease. The lease is a contract between owner
and tenant. The City of San Bernardino, not being a party to that contract, cannot be
held liable to the terms contained within the lease contract."
Recommendation #36: The Integrated Waste Management Division should require
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a deposit for all customers who do not own their property.
Recommendation #37: As another alternative, the Division could require that all
collection service be established in the name of the property owner, and hold the
property owner accountable for payment of the collection service, should the
tenant fail to pay.
Recommendation #38: The Administrative Analyst II should develop a plan to
deploy a deposit system for customers that do not own their property or a policy
that would hold the property owner accountable for payment of the collection
service, should the tenant fail to pay.
(4) The Integrated Waste Division Should Charge A Disconnect and a
Reconnect Fee For Customers Whose Service Was Terminated For Non-
Payment.
The Integrated Waste Division should charge a disconnect fee for those
customers that are disconnected from solid waste collection service for failure to pay.
This fee should reflect the costs of removing the customer from the H.T.E. utility billing
system and retrieval of the container from the customer after non-payment. The Division
should retrieve the waste containers from those customers that are disconnected for
failure to pay.
The Integrated Waste Division should charge a fee for reconnection of customers
after disconnection for failure to pay for the costs of delivering the containers after
service was restored, after the customer has paid the amount of debt owed by the
customer, and the cost of re-entering the customer's data within the H.T.E. utility billing
system.
Recommendation #39: The Integrated Waste Division should charge a fee for
reconnection of customers after disconnection for failure to pay.
Recommendation #40: The Administrative Analyst II should proposal for
consideration of the City Council to establish a fee for reconnection of customers
after disconnection for failure to pay.
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(5) The Integrated Waste Division Should Use a Wide Array of Tools To
Recover Bad Debt.
It has been the experience of the Matrix Consulting Group that 1% of the
customers generates the problems with failure to pay for services. Their failure to pay,
however, costs the other 99% whose fees must cover the cost of bad debt write-off.
This is a disservice.
The Integrated Waste Division should utilize all available tools to recover debt.
This should include the tools noted below.
• Liens. The Division should file a notice of the city's lien for garbage collection
and disposal service with the County Auditor-Controller for those that own the
property in those instances in which the property owner was the customer and
failed to pay for the service. In instances in which the tenant failed to pay, the lien
should be filed with the County Recorder.
• Collection Agency. The Water Department uses a collection agency. The
Integrated Waste Division should use the same collection agency. The Division
should add a fee to the debt owed by the customer for the cost of collection by
the collection agency.
• State Franchise Tax Board. Another alternative that should be used is to refer
accounts to the State Franchise Tax Board. Any income tax refunds for debtors
would be subordinate to the amount of bad debt owed the Division.
The Division has largely been passive in dealing with bad debt, accepting this
bad debt as a cost of doing business. This is an unfair approach that burdens those
customers that pay on time with the cost of this bad debt. The Division should adopt a
more aggressive role in the collection of bad debt and use a complete set of tools to
collect this debt.
Recommendation #41: The Integrated Waste Management Division should use all
of the tools available to collect bad debt including liens, a collection agency, and
the State Franchise Tax Board.
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Recommendation #42: The Administrative Analyst II should work with the Finance
Department to develop and deploy a full set of tools to collect bad debt including
liens, a collection agency, and the State Franchise Tax Board.
(6) The Integrated Waste Division Should Develop Performance Measures To
Evaluate Its Effectiveness on Debt Collection.
Days sales outstanding (DSO) is a gauge of credit-collection efficiency, with a
low DSO meaning that the company is collecting its outstanding receivables quickly.
The average DSO for US companies in 2005 was 40.5 days.
Bad debt ratio is the ratio of annual uncollected revenue to total billed revenue.
Uncollected revenue includes write-offs, delinquencies, and bankruptcies. A study by
Chartwell Inc. showed that the percentage of write-offs to overall revenues for utilities
was estimated at more than 0.5 percent. Individual ratios for utilities varied widely with
some utilities having a ratio as high as 2% and as low as 0.15%.
The Division should develop and utilize these measures to evaluate its own
effectiveness in bad debt collection.
Recommendation #43: The Integrated Waste Management Division should
develop and use two performance measures to evaluate its own effectiveness in
bad debt collection: days sales outstanding and bad debt ratio.
Recommendation #44: The Administrative Analyst II should develop two
performance measures to evaluate its own effectiveness in bad debt collection:
days sales outstanding and bad debt ratio including the calculation of these
measures for fiscal year 2008-09 and future fiscal years.
6. THE INTEGRATED WASTE DIVISION SHOULD ENHANCE THE EFFECTIVE
USE OF THE H.T.E. UTILITY BILLING MODULE.
The Customer Services Section has been frustrated with their ability to effectively
utilize the H.T.E. utility billing module for refuse billing and collection. In fact, the Section
is using a Microsoft Excel spreadsheet to track commercial roll-off accounts, and
entering that data into the H.T.E. utility billing module at the end of the month.
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The Business Plan developed by the R3 Consulting Group recommended the
replacement of the module.
The Matrix Consulting Group does not recommend the replacement of this
module for several reasons as noted below.
• The Water Department is effectively utilizing this billing module, and has
indicated that it has no pans to replace the module in the short-term. The City
should not acquire two utility billing modules: one for water and sewer and the
other for refuse.
• The Customer Services Section made half-hearted efforts to obtain training and
to understand the H.T.E. utility billing module. The problems appear, in part, to
be a lack of understanding of the module and insufficient training.
The City of Sunnyvale is effectively utilizing the H.T.E. utility billing module
including its use for commercial roll-offs. Other cities use this software for
commercial roll-offs as well.
The Integrated Waste Division should continue to utilize the H.T.E. utility billing
module for residential and commercial refuse billing and collection. The effective
deployment will require further effort, however, with SunGard H.T.E. to fully deploy this
system, to train the staff of the Section in its use, and to provide some limited
customization of the system to meet the needs of the Integrated Waste Management
Division. Sunnyvale, in fact, contracted with SunGard for limited customization of the
H.T.E. utility billing module. The City of Sunnyvale has offered to provide a web
demonstration of its H.T.E. utility billing module; the Customer Services Section has not
availed itself of that offer.
Recommendation #45: The Integrated Waste Division should continue to utilize
the H.T.E. utility billing module for residential and commercial refuse billing and
collection.
Recommendation #46: The Integrated Waste Division should contract with
SunGard to provide further training to the Customer Services Section in the use
and deployment of the H.T.E. utility billing module. The Administrative Analyst II
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should manage the training of the Customer Services Section staff in the use of
this module.
Recommendation #47: The Integrated Waste Division should contract with
SunGard to provide some limited customization of the H.T.E. utility billing module
(e.g., commercial roll-offs). The Administrative Analyst II should manage the
customization of the H.T.E. utility billing module working with the Water
Department to assure compatibility.
Recommendation #48: The Administrative Analyst II should arrange the web
demonstration of the H.T.E. utility billing module by the City of Sunnyvale for the
Customer Services Section.
7. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP A
BILLING, COLLECTION, AND REVENUE MANAGEMENT POLICY AND
PROCEDURES MANUAL.
The Customer Services Section has not developed a policy and procedures
manual for the customer service that it provides, revenue management and debt
collection. This manual should be developed. It should cover the basic and the unusual
processes.
In developing policies and procedures for the Section, all policies and procedures
should be reviewed annually, short is better than long (it is not the quantity, but the
quality of information that is the essential problem of the information age), and the
policies should be available on the division's intranet site. This should facilitate easy
updating.
Recommendation #49: A policies and procedures manual should be developed
for the Customer Services Section, Integrated Waste Management Division.
Recommendation #50: The Administrative Analyst II should develop the policies
and procedures manual for the Customer Services Section.
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8. THE CITY SHOULD AUTHORIZE A PERFORMANCE AUDITOR POSITION.
The City lacks a Performance Auditor position.
The City should authorize a Performance Auditor position within the Office of the
City Manager. The most recent National Association of Local Government Auditors
survey found public sector organizations had one (1) auditor for every 787 city or
county-wide positions. The City of San Bernardino, with 1,181 authorized positions in
fiscal year 2009-10, certainly warrants one (1) auditor position.
The National Association of Local Government Auditors identified a number of
benefits of an auditor position including the following:
• Enhance accountability to taxpayers and bondholders;
Build credibility with citizens,
• Help ensure that public funds are spent only in the public interest;
Help to earn and increase taxpayer confidence and respect for government;
Provide an independent and objective perspective so that the City's decisions to
expend public funds involve balanced and extensive information;
Report audited results and outcomes of programs and services;
Identify and discourage fraud through special reviews and presence in the
organization;
Verify compliance with policies, procedures, laws and regulations;
Identify risk;
Proactively prevent problems by evaluating controls through regular reviews of
organizational activities: and
• Review and appraise reliability of financial and operating information.
Recommendation #51: The City should authorize a Performance Auditor position
within the Office of the City Manager, and this position should be funded, initially,
by the Integrated Waste Fund.
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7. ANALYSIS OF SOLID WASTE COLLECTION
This chapter presents an analysis of solid waste collection services including
residential, commercial roll-off and commercial front loader.
1. THE RESIDENTIAL REFUSE COLLECTION ROUTES SHOULD BE
BALANCED IN THE SHORT-TERM, AND THE SIZE OF THE ROUTES
INCREASED AS POPULATION GROWTH AND ANNEXATION OCCURS.
The exhibit on the following page presents a sample of residential workload or
four-week period. This four-week period included two weeks in July 2009 and two
weeks in October 2009. Important points to note regarding the exhibit are presented
below.
Residential trash routes_ There was significant variation among the containers
collected for each residential trash route.
— The median number of containers collected for the residential trash routes
was 800 containers.
— The median number of containers collected for each route ranged from a
low of 738 for route T-11 to a high of 894 for route T-6.
— For almost 6% of the collection days for residential trash, the number of
containers collected on routes exceeded 1,000.
— For almost 17% of the collection days for residential trash, the number of
containers collected on routes exceeded 900, but was less than 1,000.
— For routes T-1 and T-6, the number of containers collected on collection
days exceeded 900 (including days in excess of 1,000) for 50% of the
collection days.
Overall, there is significant variation in the number of containers collected in
residential trash routes. The median number of containers varied by 21% from
the route with the lowest median number of containers compared to the route
with the highest median number of containers. The number of containers
collected per route during this four-week period at the 25% quartile amounted to
694 versus 888 at the 75% quartile: this is a range of 28%.
Matrix Consulting Group page 92
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
• Residential recycling routes. There was significant variation among the
containers collected for each residential recycling route.
— The median number of containers collected for the residential recycling
routes was 753 containers.
— The median number of containers collected for each route ranged from a
low of 589 for route R-5 to a high of 945 for route R-8.
— For almost 16% of the collection days for residential recycling, the number
of containers collected on routes exceeded 1,000.
— For almost 12% of the collection days for residential recycling, the number
of containers collected on routes exceeded 900, but was less than 1,000.
— For routes R-2 and R-8, the number of residential recycling containers
collected on collection days that exceeded 900 (including days in excess
of 1,000) for 55% of the collection days.
Overall, there is significant variation in the number of containers collected in
residential recycling routes. The median number of containers varied by 64%
from the route with the lowest median number of containers compared to the
route with the highest median number of containers. The number of containers
collected per route during this four-week period at the 25% quartile amounted to
609 versus 960 at the 75% quartile: this is a range of 58%.
• Residential green (yard waste) routes. There was significant variation among
the containers collected for each residential green (yard waste) route.
— The median number of containers collected for the residential green (yard
waste) routes was 643 containers.
— The median number of containers collected for each route ranged from a
low of 473 for route G-8 to a high of 779 for route G-1.
— For almost 1% of the collection days for residential green (yard waste), the
number of containers collected on routes exceeded 1,000.
— For almost 1% of the collection days for residential green (yard waste), the
number of containers collected on routes exceeded 900, but was less than
1,000.
— For almost 11% of the collection days for residential green (yard waste),
the number of containers collected on routes exceeded 800, but was less
than 900.
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Management Study of the Integrated Waste Management Division
Overall, there is significant variation in the number of containers collected in
residential green (yard waste). The median number of containers varied by 65%
from the route with the lowest median number of containers compared to the
route with the highest median number of containers. The number of containers
collected per route during this four-week period at the 25% quartile amounted to
540 versus 747 at the 75% quartile: this is a range of 38%.
• As noted in the Business Plan developed by the R3 Consulting Group,
approximately 30% of residential and commercial vehicles deliver loads that are
over 11 tons and potentially over the legal street limit.5 This appears to continue
to be a problem, particularly with the trash routes. Operators typically take two
loads to the landfill each day. This appears to be a problem with the incentives
created by the incentive plan. Operators are provided with the opportunity to end
their workday upon completion of their route.
The Integrated Waste Division should take two actions to address these
challenges, one short-term and the other longer-term.
This first step should be to balance the residential trash, recycling, and green
(yard) waste routes using the Division's computer modeling software: RouteSmart. With
a constantly shifting population base and increased waste stream fragmentation among
trash, recycling, and green waste, the analysis and balancing of routes is needed to
keep costs down. Communities that haven't evaluated collection routes within the last
two years, such as San Bernardino, likely are not operating as efficiently as possible.
Effective route management can reduce labor and vehicle needs, balance workloads,
reduce overtime demands and allow for workload adjustments during periods of
seasonal waste variation.
The design of the routes should have two interconnecting phases: macro and
micro.
• Macro routing focuses on the entire geographic area to be served by all vehicles
and by each individual crew in one collection day.
• Micro routing hones in on each individual vehicle's specific path for each route.
5 Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page 4.
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Many communities use macro routing to determine basic route size and
operation region, but let the drivers determine the exact route based on their daily
experiences. In small communities, this method may be sufficient. However, there are
several key benefits for San Bernardino of micro routing:
• Micro routing minimizes accidents by limiting dangerous left turns;
• Micro routing increases customer satisfaction by ensuring that different collection
crews will consistently service each route segment using the same specific path;
• Micro routing minimizes property and personal injury resulting from reversing
vehicles down streets;
Micro routing minimizes productivity loss due to absenteeism since substitute
drivers may lose time while calculating the best path route; and
• Micro routing helps the Operations Manager and Operations Supervisors predict,
with reasonable accuracy, where the Operator will be at a given time.
Despite the planning and research involved, micro routing enables the route manager to
maximize crew safety and time efficiency.
The goal of macro and micro route design is a balance between the number of
households and containers served per route, weight collected, time requirements and
distance between customers and landfills. The most overlooked basic data needs
required of both routing include the number of households served (total and per route)
and the average set-out rate per route/per collection day.
The first step in deploying the route management software is defining collection
service areas that are well balanced. As a starting point, the Division should consider
total customers served, multiplied by collections per week, divided by collection days.
The Division should make sure it knows the number of customers served in each area
(e.g., street sweeper districts). After these factors have been determined, the Division
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should divide the collection service areas (street sweeping districts) into individual
routes (work per truck / crew per day). In this step, the Division will need to know:
• House / customer count data on a block-by-block basis;
• Available collection vehicles;
• Average set-out rates (and differences by region, if known);
• Average weights per set-out (and differences by region, if known);
• Time required per stop (including travel between customers);
• Non-productive time (to route, to landfill locations, to corporation yard, etc.);
• The maximum number of customers that can reasonably be served by each type
of vehicle / crew combination, accounting for differences in collected materials,
vehicle capacity, compaction ratios, vehicle age/reliability, and crew size.
Based on this data, the computer model should be used design path routes, using
heuristic routing guidelines, keeping in mind the location of one-way streets, dead-ends
and other topographic or traffic-related features that affect heuristic route design.
Finally, the routes should be driven to test for practicality.
The City of Folsom used RouteSmart to balance its collection route workloads,
and balance the material collected and delivered to the landfill or the Materials
Recovery Facility. It took seven (7) months to complete the route balancing using
RouteSmart. The City of San Diego uses RouteSmart to improve its efficiency and
productivity, to plan routes using a measurement system based upon the number of
homes or service stops pre route hour. The total number of routes was reduced.
Balancing routes using RouteSmart is the first step. That should be done in fiscal
year 2010-11. The Integrated Waste Operations Manager, the Administrative Analyst II,
the Integrated Waste Operations Supervisors, and three to five Integrated Waste
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Operators should participate as a team in completing the balancing of the routes. This
would first require training by RouteSmart in the use of the software. After the training,
the Division should utilize the RouteSmart Production Lab to provide initial assistance in
the application and use of the software. Using Production Lab, RouteSmart itself
creates optimized dispatch plans with balanced routes and minimal total travel time for
servicing stops. The Division would simply provide the data and the appropriate staff.
This should be done for the first several routes until the Division becomes familiar and
comfortable with the features of the system.
The second step is increasing the size of the routes to meet benchmarks. The
Matrix Consulting Group uses a benchmark for the route size of residential trash, green,
and recycling collection of 875 to 1,125 containers for a 10-hour workday. The actual
route sizes are smaller than this benchmark. It should be noted that the R3 Consulting
Group cited a benchmark of 700 to 800 accounts per day at 23 to 27 seconds per stop.6
That would be sufficient for no more than six (6) hours of collection work in a workday.
The Matrix Consulting Group believes that this benchmark was based upon an 8-hour
workday, which the R3 Consulting Group was recommending. The benchmark cited by
the Matrix Consulting Group is for a 10-hour workday, the current work schedule utilized
for the Division. At 23 to 27 seconds per stop, the benchmark cited by the Matrix
Consulting Group would result in five and one-half (5.5) to eight and one-half(8.5) hours
of collection work in a 10-hour workday.
The Matrix Consulting Group recommends that routes be sized at not less than
1,000 containers per workday. This benchmark indicates the capacity for the existing
level of authorized positions within residential refuse collection to absorb growth. That
e Business Plan for the Integrated Waste Management Division, R3 Consulting Group. May 2008, page 6.
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capacity amounts to approximately 26% for residential trash, 33% for residential
recycling, and 56% for residential green waste. This should not occur immediately, but
rather as a result of the population growth and annexations that occur over the next
several years.
It is more important in the short-term to balance routes than focus on route size.
Recommendation #52: The Integrated Waste Division should balance the
residential trash, recycling, and green waste routes in fiscal year 2010-11 using
RouteSmart software. This balancing should occur at the macro and micro-level.
Recommendation #53: The Integrated Waste Operations Manager, the
Administrative Analyst II, the Integrated Waste Operations Supervisors, and three
to five Integrated Waste Operators should participate as a team in completing the
balancing of the routes.
Recommendation #54: The Integrated Waste Division should obtain training by
RouteSmart In the use of the software. After the training, the Division should
utilize the RouteSmart Production Lab to provide initial assistance in the
application and use of the software.
2. THE COMMERCIAL FRONT LOADER REFUSE COLLECTION ROUTES
SHOULD BE BALANCED IN THE SHORT-TERM, AND INCREASE THE
NUMBER OF ROUTES TO BRING WORKLOAD PER ROUTE WITHIN
BENCHMARKS.
The table below presents a sample of commercial front loader workload for a
four-week period. This four-week period included two weeks in July 2009 and two
weeks in October 2009.
Route Monday Tuesday Wednesday Thursda Frida Saturda Median
C-1 160 138 152 138 154 - 145
C-2 140 105 130 130 130 - 130
C-3 165 123 138 114 139 - 131
C4 136 139 130 134 116 - 132
C-5 130 125 125 120 128 125
C-6 130 125 133 118 140 127
C-7 143 130 129 114 137 129
C-8 153 124 110 122 133 123
C-9 115 123 119 120 130 120
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Route Monday Tuesday Wednesday Thursday Friday Saturday Median
C-10 140 123 128 118 145 125
C-11 139 103 119 104 112 108
C-12 44 - 28 - - - -
C-13 - - 91
C-14 - - - - 95
C-15 108 80 58 88 99 84
Important points to note regarding the table are presented below.
• The median number of containers collected per route was 126 containers during
this four-week sample.
• Route C-15 is a recycling route, and should not be considered in terms of its
capacity to absorb additional trash workload.
• The median number of containers collected per day varied somewhat among the
commercial front loader routes. The median ranged from 108 containers for route
C-11 to 145 containers for route C-1, a range of 34%.
• The number of containers collected per day on any of the commercial front
loader routes amounted to 115 containers at the 25`h percentile and 138
containers at the 75`h percentile, a range of 20%.
The Matrix Consulting Group uses a benchmark of 120 containers and 725 cubic
yards collected for an 8-hour workday for commercial front loaders. The Operators
assigned to front loaders are exceeding that benchmark at the median.
Two actions need to be taken to address this problem.
First, the commercial front loader routes should be balanced using much the
same approach recommended earlier for the residential routes.
Secondly, additional routes should be established on Monday and Friday, and
the twelfth route should operate Monday through Friday as a full route. (While there is a
route C-12, it does not appear to function every day of the week and does not appear to
function as a full route when a twelfth route is utilized). A total of fourteen (14) routes
would be required on Monday and thirteen (13) on Friday.
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The Matrix Consulting Group is not recommending additional staff to enable the
establishment of these additional routes. Other measures, recommended in the
subsequent section of this chapter, would enable the re-allocation of Operators to
establish these additional routes. The Matrix Consulting Group is not recommending
additional commercial front loaders. The Division has a spare ratio of 75%. However,
the Matrix Consulting Group is recommending the replacement of those front loaders
that exceed replacement guidelines so that the age of all front-line front loaders is less
than the replacement guideline. In addition, the Matrix Consulting Group is
recommending that all commercial front loaders be specified as low cab forward (LCF)
chassis.
Recommendation #55: The Integrated waste Management Division should
balance the commercial front loader routes using much the same approach
recommended earlier for the residential routes.
Recommendation #56: Additional routes should be established on Monday and
Friday, and the twelfth route should operate Monday through Friday as a full
route. (While there is a route C-12, it does not appear to function every day of the
week and does not appear to function as a full route when a twelfth route is
utilized). A total of fourteen (14) routes would be required on Monday and thirteen
(13) on Friday.
3. THE CITY SHOULD LARGELY UTILIZE 1-PERSON CREWS FOR
COMMERCIAL FRONT LOADER TRUCKS.
2-person crews are utilized for commercial front loader refuse collection with
some exceptions. Based upon a five-week sample in June and July 2009, route C-4
uses a 1-person crew for 92% of the collection days Monday through Friday, route C-3
uses a 1-person crew for 68% of the collection days Monday through Friday, and route
C-2 uses a 1-person crew for 24% of the collection days Monday through Friday.
All of the routes should be converted to 1-person collection crews. The Business
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Plan prepared by the R3 Consulting Group recommended that the Division "minimize
the number of two-person commercial routes and reassign the 'extra' drivers to
residential collection (estimated 5 to 6 drivers."7 The Collection Operations Review
prepared by the R3 Consulting Group was more specific. It noted that "the City currently
uses two-person crews on all commercial front-loader routes. While we are aware of
other operations that use two-person crews, one-person crews are the industry
standard for commercial front-loader routes. Based on our field observations, it appears
that there is significant potential to reroute the commercial collection system to
incorporate one-person routes. While our audit did not identify any commercial accounts
that clearly require two-person crews, in any cases where two-person crews may be
required to service specific accounts, The City would likely benefit from establishing a
dedicated route(s) to service those accounts rather than staffing all commercial front-
loader routes with two-person crews to handle such requirements."8 The R3 Consulting
group recommended standards for determining front-end loader crew size. These
standards included accounts with vertical compactor units, bins over 4 cubic yards, bins
on soft service (e.g., gravel), container must be pushed up or down an incline,
excessively heavy bins and excessive daily route workloads. The R3 Consulting Group
recommended that the initial decision as to which accounts warrant two-person crews
rest with the route auditor/ supervisor.9
There are twenty-eight Operator positions allocated to commercial front loader
trash collection. The conversion to 1-person front loader routes could significantly
benefit the commercial customers served by the City by enabling a reduction in
Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page 9.
s Collection Operations Review, R3 Consulting Group,August 2005, pages 4 and 5
e Collection Operations Review, R3 Consulting Group,August 2005, pages A-3 and A-4.
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commercial trash collection rates or the provision of additional services such as
expanded recycling at no additional cost to the commercial customers.
The Division should continue to convert commercial front loader routes to 1-
person crews. This conversion should be accomplished by the Operations Supervisor in
consultation with the Operators for these routes. Each route should be audited. In
situations where backing the front loader truck could be dangerous or the bin is located
down an incline, the Operations Supervisor should arrange for the two (2) Equipment
Service Workers to pull the bin out for easier collection by the front loader, and place
the bin back after the trash has been collected. It should be noted that no such
arrangements have been made for the first three routes that have been converted to 1-
person crews.
One critical factor to enable the conversion of these routes to 1-person crews is
the use of low cab forward (LCF) chassis front loaders. All of the commercial front
loaders acquired by the City should be low cab forward (LCF) chassis.
Recommendation #57: The Integrated Waste Management Division should
continue to convert commercial front loader routes to 1-person crews.
Recommendation #58: This conversion should be accomplished by the
Operations Supervisor in consultation with the Operators for these routes.
Recommendation #59: Each commercial front loader route should be audited. In
situations where backing the front loader truck could be dangerous or the bin is
located down an incline, the Operations Supervisor should arrange for the two (2)
Equipment Service Workers to pull the bin out for easier collection by the front
loader, and place the bin back after the trash has been collected.
Recommendation #60: All of the commercial front loaders acquired by the City
should be low cab forward (LCF) chassis.
Recommendation #61: The City should utilize the conversion to 1-person front
loader routes to benefit the commercial customers served by the City by reducing
commercial trash collection rates or providing additional services such as
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expanded recycling at no additional cost to the commercial customers.
4. THE DIVISION SHOULD ADDRESS THE POTENTIAL FOR AUTOMATED
SIDE LOADER AND FRONT LOADER TRUCKS TO EXCEED LEGAL WEIGHT
LIMITS.
Refuse collection trucks have legal limits that refuse collectors — public or private
— must comply with. The California Highway patrol can and may cite operators with
overweight vehicles at the landfill if those vehicles exceed their weight limitations.
As noted in the Business Plan developed by the R3 Consulting Group,
approximately 30% of residential and commercial vehicles deliver loads that are over 11
tons and potentially over the legal street limit.10 This appears to continue to be a
problem, particularly with the residential trash routes. Operators typically take two loads
to the landfill each day, but residential trash routes still routinely exceed 11 tons. This
appears to be a problem with the incentives created by the incentive plan. Operators
are provided with the opportunity to end their workday upon completion of their route.
However, trucks can be specified to carry that weight (11 tons) and more.
This problem also occurs with some commercial front loader Operators and not
others. It appears to be a problem with routes C-2, C-3, and C-7 on Monday and C-1, C-
4, C-5, and C-8 on Friday. These Operators are taking the collected waste to the landfill
twice a day. However, it does not appear to be a problem during other days of the week.
The Division should address these problems with vehicles potentially exceeding
weight limits. The recommended steps are presented below.
• The weight limits in refuse collection vehicles should be specified to limit
the number of trips to the landfill. Each trip an Operator makes to the landfill is
unproductive time — time not spent collecting trash, recycling, or green waste. It
is in the City's interest to minimize the number of trips. The City of Phoenix
learned this lesson during its managed competition for residential trash
0 Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page 4
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collection. It learned that larger capacity automated side loaders enabled larger
route sizes. This same approach should be utilized in San Bernardino. The
weight limits of the collection trucks, particularly the automated side loaders and
the commercial front loaders, should be specified to carry not less than 11 tons.
• Integrated Waste Operation Supervisors and the Operators should be held
accountable for complying with the legal weight limits of the collection
vehicles. The Business Plan prepared by the R3 Consulting Group
recommended that:
— Supervisors and Operators should review and monitor all current routes to
determine maximum load points and eliminate vehicle overweight's;
— All trucks that currently have "on board scales" should be calibrated and
operations;
— All Operators should be trained in the operation of"on board scales";
— Establish and enforce a formal overweight policy; and
— Overweight loads should be documented daily by the Supervisor and
Operator to determine the cause and method of prevention."
Recommendation #62: Integrated Waste Operation Supervisors and the Operators
should be held accountable for complying with the legal weight limits of the
collection vehicles.
Recommendation #63: The development of specifications for collection trucks by
the Fleet Services Division should include the participation of representative
Operators and Supervisors from the Integrated Waste Division.
" Business Plan for the Integrated Waste Management Division, R3 Consulting Group, May 2008, page 7
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5. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD BALANCE
THE COMMERCIAL ROLL-OFF ROUTES, MODIFY THE METHODOLOGY
FOR COLLECTION OF ROLL-OFF CONTAINERS, AND INCREASE ROUTE
SIZES.
The tables below present a sample of commercial roll-off workload or four-week
period. This four-week period included two weeks in July 2009 and two weeks in
October 2009.
Total Roll-Off Containers Collected By Day of Week
Week Of
26-Oct 19-Oct 6-Jul 13-Jul Median
Monday 31 34 27 24 29.0
Tuesday 31 37 20 34 32.5
Wednesday 33 42 41 N/A 37.0
Thursday 36 31 33 37 34.5
Friday 43 42 38 1 42 42.0
Total Roll-Off Routes By Day of Week
Week Of;
26-Oct 19-Oct 6-Jul 13-Jul Median
Monday 7 6 5 5 5.5
Tuesday 7 7 4 7 7.0
Wednesday 7 6 7 N/A 7.0
Thursday 8 7 6 7 7.0
Friday 8 9 7 7 7.5
Average Number of Containers Per Route
Week Of:
26-6ct 19-Oct 6-Jul 13-Jul Median
M4.43 5.67 5.40 4.80 5.1
4.43 5.29 5.00 4.86 4.9
4.71 7.00 5.86 N/A 5.9
4.50 4.43 5.50 529 4.9
5.38 4.67 5.43 6.00 5.4
Important points to note regarding the data contained in the three tables are presented
below.
• The median number of roll-off containers collected by all of the roll-off Operators
by day of week ranged from a low of 29 on Monday to a high of 42 on Friday.
The actual number ranged from a low of 20 containers on Tuesday during the
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week of July 6`h to a high of 43 containers on Friday during the week of October
26`h.
• The median number of roll-off collection routes ranged from a low of 5.5 on
Monday to a high of 7.5 on Friday. The actual number ranged from a low of 4
routes on Tuesday during the week of July 6th to a high of 9 routes on Friday
during the week of October 19th.
The average number of containers per route ranges from a low of 4.43
containers on Monday and Tuesday the week of October 26th, and Thursday the
week of October 19th to a high of 7 containers on Wednesday during the week of
October 19th. Overall, the average ranged from a low of 4.9 containers per route
on Tuesday and Thursday to a high of 5.9 containers per route on Wednesday.
The median number of containers collected per route during this four-week
period was 5 containers.
• The number of containers collected per route per day at the 25th percentile was 4
containers. The number of containers collected per route per day at the 75th
percentile was 6 containers. This is a range of 50%.
The Matrix Consulting Group uses a benchmark of 10 containers for an 8-hour
workday. The R3 Consulting Group used a benchmark of 8 to 10 "pulls" a day. The
Operators for commercial roll-off trucks are not meeting either of these benchmarks with
rare exceptions. On the average, the Operators for commercial roll-off trucks are at 50%
to 75% of this benchmark.
The Division should take three steps to address this problem.
The first step is to change the methods for collecting commercial roll-off waste. A
comparison of the existing and proposed methodology is presented below.
• At the present time, the commercial roll-off Operators drive to each roll-off
container location twice. The first visit is to pick up the container, take the
container to the landfill, and dump the waste from the container. The second visit
is to bring the empty container back to the site.
• The more efficient methodology would be to bring an empty container to the first
container site, leave that empty container at that site, take the full container to the
landfill and dump the waste from the container, and then take that empty
container to the second site. Under this approach, the Operator would visit the
first site twice, but all subsequent sites only once.
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The second step would be to balance the commercial roll-off routes. The
approach that should be used to balance these roll-off routes should be much the same
as mentioned for residential routes. The variation between routes is significant, and
should be addressed.
The third step should be to increase the size of the routes to not less than 8 roll-
off containers per day. Based upon the four-week sample in July and October 2009,
approximately four (4) to five (5) Operators and routes would be required on a daily
basis. This compares to the seven routes that exist at the present time. This represents
an unused capacity amounting to 29% to 33%.
Overall, the staffing of the commercial roll-off line of business exceeds the
workload. This is due, in part, to a labor-intensive work methodology.
Recommendation #64: The Integrated Waste Management Division should utilize
a more efficient methodology for collection of roll-off containers. bring an empty
container to the first container site, leave that empty container at that site, take
the full container to the landfill and dump the waste from the container, and then
take that empty container to the second site.
Recommendation #65: The Integrated Waste Management Division should
balance their commercial roll-off routes.
Recommendation #66: The Integrated Waste Division should increase the
increase the size of the commercial roll-off routes to not less than 8 roll-off
containers per day.
6. THE INTEGRATED WASTE DIVISION SHOULD DEVELOP A FIVE-YEAR
REPLACEMENT PLAN FOR ITS FLEET AND SHOULD REPLACE EIGHT
COLLECTION TRUCKS IN FISCAL YEAR 2010-11.
Planning for the replacement of the Division's fleet is a matter of prudent financial
management. In its more basic form, the development of a five-year replacement plan is
no more than a schedule listing the specific equipment proposed for replacement in
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order of priority, together with cost estimates and the proposed method to finance them
(i.e., guaranteed buyback, purchase, etc.).
The five-year replacement plan would not be static. It would be updated each
fiscal year to reflect changing priorities, changing maintenance and repair costs,
unexpected component failures, etc.
The five-year replacement plan should identify the specific equipment to be
replaced, the year in which it would be replaced, the amount proposed to be expended
each year, and the proposed method of financing the replacement of the equipment.
The Division does not have the fiscal ability to replace every piece of equipment solely
based on the age of a vehicle. Rather, the Division will have to balance priorities for
replacement within the financial resources avaiiabie. The five-year replacement plan Is
an important tool to evaluate whether the balancing of these priorities against the limited
financial resources will result in an aging, expensive-to-maintain fleet and replacement
rates need to be increased.
The Division has replaced much of its fleet in the past few years. Even given this
replacement, there are a number of factors that suggest that there is still aspects of the
fleet that need to be replaced. These factors are presented below.
• One third of the automated side loader fleet exceeds the replacement cycle of
seven (7) years for the fleet. Only two 2009 automated side loaders are in the
fleet and only one 2008 automated side loader.
• The average age of the fleet is 5.4 years. The age of one-third of the fleet
exceeds 9 years. Only 25 automated side loaders are less than 7 years if age;
there are 28 residential trash, recycling, and green waste routes.
• 57% of the commercial front loader fleet exceeds the replacement cycle of seven
(7) years. Only nine commercial front loaders are in the fleet with an age less
than 7 years.
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• The average age of the commercial front loader fleet exceeds the replacement
guideline. The average age of the fleet is 7.3 years. This exceeds the
replacement cycle.
• 15% of the commercial roll off trucks exceeds the replacement cycle of ten (10)
years.
• The average age of the commercial roll off fleet is 7.5 years.
These factors suggest that aspects of the Division's fleet need to be replaced in the
short-term, particularly the commercial front loader fleet.
The Integrated Waste Management Division should prepare this five-year
replacement plan for the review of the Fleet Services Division, and the Public Services
Director.
Overall, the Division should replace not less than four (4) automated side loader
trucks a year, one (1) to two (2) commercial front loader trucks a year, and one (1) to
two (2) commercial roll-off trucks every other year.
Recommendation #67: The Integrated Waste Management Division should
prepare a five-year replacement plan for its fleet of solid waste collection
vehicles.
Recommendation #68: The Administrative Analyst II should prepare the five-year
replacement plan for the Integrated Waste Management Division.
Recommendation #69: In fiscal year 2010-11, the Integrated Waste Division
should replace not less than three (3) commercial front loader trucks, four (4)
automated side loader trucks, and one (1) commercial roll-off trucks. Lease-
purchase financing should be used for the replacement of this equipment.
7. THE INTEGRATED WASTE OPERATOR CLASS SPECIFICATION SHOULD
BE MODIFIED.
At the present time, the Integrated Waste Management Division uses two
different classifications for operation of its equipment: Integrated Waste Operator and
Senior Integrated Waste Operator. The Integrated Waste Operator can "flex' up to the
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Senior Integrated Waste Operator based upon demonstration of the appropriate skills
and knowledge as demonstrated in tests for the classification. However, the Integrated
Waste Operator is not required to "flex" to the Senior Integrated Waste Operator.
While the Senior Integrated Waste Operator can operate all of the equipment
utilized by the Division — automated side loaders, commercial front loaders, and
commercial roll-off trucks — the Integrated Waste Operator can not operate the full
range of equipment due to the class of driver's license held by the Integrated Waste
Operator.
This is an unusual situation. it limits managerial and supervisory flexibility. It is
unusual in that many other cities require the operator to obtain the appropriate license
within 12 months of hire or to possess the license at hire.
Santa Monica, for example, requires for its Solid Waste Equipment Operator a
Class B California Driver's License. The major duties include "operates various solid
waste vehicles, including automated side loaders, front-end loaders, rear loaders, fork
lifts, skip loaders, stake bed trucks, pick up trucks and other vehicles used to collect
solid waste and recyclable materials."
The City should modify the classification for Senior Integrated Waste Operator
and Integrated Waste Operator. It should consolidate these two classifications, and
require a valid California Class B Driver's license at hire. Existing incumbents of the
Integrated Waste Operator should be exempt from this requirement, but still able to
"flex" up to Senior Integrated Waste Operator.
Recommendation #70: The City should modify the classification for Senior
Integrated Waste Operator and Integrated Waste Operator. It should consolidate
these two classifications, and require a valid California Class B Driver's license at
hire.
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Recommendation #71: Existing incumbents of the Integrated Waste Operator
should be exempt from this requirement, but still able to "flex" up to Senior
Integrated Waste Operator.
8. THE FLEET SERVICES DIVISION SHOULD DEDICATE MECHANICS TO THE
MAINTENANCE OF SOLID WASTE COLLECTION VEHICLES.
At present, the Fleet Services Division utilizes a "generalist" approach to the
deployment of its mechanics. The Division is authorized two (2) Equipment Service
Workers, nineteen (19) Equipment Mechanic I / ll's, a Fleet Fabrication Welder, and two
(2) Equipment Maintenance Supervisor positions (excluding six administrative support,
p[arts, and managerial positions).
The Fleet Services Division has not established a "line" of Equipment Service
Workers and Equipment Mechanic i / !i's that are largely allocated to the maintenance
and repair of solid waste collection vehicles. The Division should establish this "line".
Based upon an application of vehicle equivalency units by the Matrix Consulting
Group to the existing fleet, approximately six (6) positions should be allocated to the
maintenance and repair of automated side loaders, commercial front loaders, and
commercial roll-off trucks. This would approximate four (4) to five (5) Equipment
Mechanic II's. The Fleet Fabrication Welder should also be assigned to the fabrications
and welding repair of automated side loaders, commercial front loaders, and
commercial roll-off trucks. The assignment of these staff to the maintenance and repair
of automated side loaders, commercial front loaders, and commercial roll-off trucks
should be a primary role, but not exclusive.
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One of these four (4) to five (5) Equipment Mechanic II positions should be
classified as a Lead Equipment Mechanic with a higher level of compensation that
Equipment Mechanic II.
These four Equipment Mechanic and Lead Equipment Mechanic positions should
be assigned to the swing shift.
Recommendation #72: The Fleet Services Division should establish a "line" of
Equipment Mechanic I / II's that are largely allocated to the maintenance and
repair of automated side loaders, commercial front loaders, and commercial roll-
off trucks.
Recommendation #73: This line should include approximately four (4) to five (5)
Equipment Mechanic II's.
Recommendation #74: One of these four (4) to five (5) Equipment Mechanic II
positions should be classified as a Lead Equipment Mechanic with a higher level
of compensation that Equipment Mechanic ii.
Recommendation #75: These four (4) Equipment Mechanic and Lead Equipment
Mechanic positions should be assigned to the swing shift.
9. THE MOBILE MECHANIC SHOULD BE PROVIDED WITH A PORTABLE
RADIO AND HIS / HER OWN RADIO CHANNEL.
One of the concerns raised by employees during the course of this study was the
ability of the Operators to communicate with the mobile mechanic from the Fleet
Services Division. When breakdowns occur in the field, the Operators need to be able to
communicate with the mobile mechanic directly regarding the nature and extent of the
problem so that the mobile mechanic has the proper tools, parts, and preparation to
make the repair.
To enable the Fleet Services Division to address this challenge, the Division
should provide the mobile mechanic with his / her own portable radio, a dedicated
channel, and advertise that availability to the Operators of the Integrated Waste
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Management Division (as well as other customers in other organizational units of the
City with a consistent need to access to the mobile mechanic).
Recommendation #76: The Fleet Services Division should provide the mobile
mechanic with his / her own portable radio, a dedicated channel, and advertise
that availability to the Operators of the Integrated Waste Management Division (as
well as other customers in other organizational units of the City with a consistent
need to access to the mobile mechanic).
10. THE FLEET SERVICES DIVISION SHOULD DEVELOP AND IMPLEMENT A
PLAN TO REDUCE DOWNTIME FOR SOLID WASTE COLLECTION
VEHICLES.
The Collection Operations Review completed by the R3 Consulting Group noted
problems with availability of solid waste collection trucks.t2 The report noted vehicle
availability was 65% and 52% for front loaders on the dates sampled, and 68% and
71% for automated side loaders. The report noted that vehicle availability in the range of
80% to 90% is considered to bean industry standard.
The extent of downtime still appears to be a problem despite replacing much of
the fleet assigned to the Integrated Waste Division. For example, on October 23`d:
• 4 of the 21 commercial front loader trucks were down or 19% - within the vehicle
availability benchmarks of 80% to 90% availability;
• 4 of the 13 commercial roll-off trucks were down or 31% - exceeding the
benchmarks of 80% to 90% availability; and
• 12 of 28 automated side loaders were down or 43% - exceeding the benchmarks
of 80% to 90% availability
Overall, despite a significant investment by the City in replacing its solid waste collection
trucks, the downtime still exceeds benchmarks.
At the same time, the extent of solid waste collection truck "spares" exceeds
benchmarks by a significant extent. The spare ratio for automated side loaders is 36%
" R3 Consulting Group, Collection Operations Review,August 2005, page 5
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versus the benchmark of 20% to 25%. The spare ratio for commercial front loaders is
75%. However, any reduction in this spare ratio can only be made after the problem
with downtime is addressed.
The Fleet Services manager should develop a plan for addressing this problem
for the review and consideration of the Public Services Director. This plan should
identify how the Fleet Services Division Manager plans on reducing the extent of
downtime. This plan should include the elements noted below.
• Replacing those "front line" solid waste collection trucks that still exceed
the replacement cycle, and continuing to replace those vehicles on an ongoing
basis so that the average age of the fleet is one-half of the replacement cycle. As
noted previously, 33% of the automated side loader fleet exceeds the
replacement cycle of seven years. 57% of the commercial front loader fleet
exceeds the replacement cycle of seven years.
Moving more of the maintenance and repair work to the swing shift. There
• is no downtime if the truck is taken off the line after the end of the collection day
and returned to service before the next collection day begins. This would require
that all preventive maintenance for solid waste collection trucks be moved to the
swing shift and much of the repairs, and would probably require shifting the solid
waste collection truck "line' to the swing shift.
• Evaluating the balance of mechanics to workload. The Fleet Services
Manager should evaluate the workload of the fleet using vehicle equivalency
units to determine whether there is sufficient number of mechanics to maintain
and repair the City's fleet.
• Reducing the spare ratio for solid waste collection trucks. This reduction
should be made after the "front line" collection trucks have been replaced so that
all of the "front line" collection trucks are within the replacement cycle, and after
the problem with downtime, particularly for automated side loader trucks, has
been addressed. For example, the number of spares for automated side loader
trucks should amount to 7 and not the existing 12.
The extent of downtime for these solid waste collection trucks can set off a chain
reaction that can lead to missed routes, uncollected trash and recyclables, and angry
residents. The Division has mitigated that risk by using a high spare ratio. Another
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alternative is to assure that all "front line" trucks are within the replacement cycle, that
much of the maintenance and repair work for these trucks occurs during the swing shift,
and that sufficient number of mechanics is available.
Recommendation #77: The Fleet Services Manager should develop a plan for
addressing the problem with solid waste collection equipment downtime for the
review and consideration of the Public Services Director.
10. THE FLEET SERVICES DIVISION AND THE INTEGRATED WASTE DIVISION
SHOULD DEVELOP A SERVICE LEVEL AGREEMENT REGARDING THE
MAINTENANCE, REPAIR, AND REPLACEMENT OF THE FLEET ASSIGNED
TO THE INTEGRATED WASTE DIVISION.
Good customer service management stems from an acute sensitivity to the needs
and concerns of fleet users, and manifests itself in a set of communication, decision-
making, reporting, and feedback processes which encourage fleet users to actively
participate in the management, and not simply the use, of vehicles and equipment.
A clear understanding of the needs and concerns of customers is also critical to
effectively running a fleet management organization. The understanding by the Fleet
Services Division of its customers' needs should not be based solely on informal
communication. The lack of a formal customer communication infrastructure can limit its
ability to quickly revise its service practices to keep pace with changes in its customers'
service needs. Relevant information may be lost or misinterpreted if communicated only
through informal channels. In addition, the lack of a formal communication process can
prevent the Fleet Services Division from gathering consistent information with which to
evaluate customer satisfaction with its services.
One way to improve customer communication and relations is through the
development of detailed service agreements. These agreements should include a
description of service procedures, prices and billing procedures, repair priorities, repair
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authorization limits, performance standards, contact persons, and customer
responsibilities. The agreements provide customers with a better understanding of the
range of services offered by the fleet services organization and how to access these
services. They also establish a clear understanding of how the fleet organization's
performance should be judged.
A sample service level agreement is presented in appendix — 1.
Recommendation #78: The Fleet Services Division should develop and adopt
service level agreements with the Integrated Waste Management Division.
11. THE FLEET SERVICES DIVISION AND THE INTEGRATED WASTE DIVISION
SHOULD MUTUALLY DEVELOP MEASURES FOR THE PERFORMANCE OF
THE FLEET SERVICES DIVISION.
Performance measures enable a fleet management organization to answer the
question, "How do we know whether we are doing a good job?" Many organizations
simply focus on budgetary performance. Performance measures can:
• Emphasize fleet management strengths (prove fleet management is doing a
good job);
• Identify areas where fleet management needs to improve;
• Help fleet management achieve future performance improvement; and
• Help fleet management make an objective case for more (or fewer) resources.
If a fleet organization can't communicate its performance to top management,
there is a significant danger that management will not understand the overall value of
the services being provided.
Performance measures and reports are not just for upper management. They are
also important tools to communicate with fleet "customers" as well to improve
communication with its customers and to demonstrate the value of the services that it
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provides.
Fleets can usually use the following categories to begin defining specific
performance measures and reports:
• Cost;
• Quality of Service;
• Timeliness of Service;
• Customer Satisfaction;
• Safety;
• Regulatory Compliance;
• Fleet Utilization; and
• Fleet Appearance.
Top management typically needs high-level information which can impact overall
organizational performance. Customers will probably care more about the timeliness
and quality of service they receive ("I want my vehicle fixed quickly and correctly").
Employees of the Fleet Services Division need to know what people think of their work
(quality, timeliness, customer satisfaction).
A description of proposed additional performance measures for the Fleet
Services Division is presented in the appendix - 2. The Division should report its
performance for these measures to the Integrated Waste Management Division on a
monthly basis.
Recommendation #79: The Fleet Services Division should develop performance
measures and report on a monthly basis their accomplishment to the Integrated
Waste Management Division.
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11. MODIFICATIONS SHOULD BE MADE TO THE LNG FUELING STATION.
During the course of the study, Operators within the Integrated Waste
Management Division identified a number of challenges to the LNG fueling station
located at the City's corporation yard. These challenges are presented below.
• LNG fuel deliveries should be made at a time when it is unlikely that the City's
equipment operators will need to refuel their vehicles. The Fleet Services
Manager should coordinate delivery times with the LNG fuel delivery company so
that deliveries occur later in the workday (e.g., after 4 p.m.).
• There is only one (1) LNG fueling station. There are over 80 solid waste
collection trucks. It is a "circus" when all of the Operators are trying to refuel their
trucks. At a minimum, a second fueling station should be added.
• The LNG fueling station needs a canopy. The LNG nozzle seal leaks. this
problem is apparently caused by water. It is an OSHA problem. And in any case,
Operators should be provided with coverage from inclement weather when
fueling their trucks.
These measures should be addressed to reduce complications that Operators
encounter in refueling their solid waste collection trucks.
Recommendation #80: The Fleet Services Manager should coordinate delivery
times with the LNG fuel delivery company so that deliveries occur later in the
workday (e.g., after 4 p.m.).
Recommendation #81: The City should add a second LNG fueling station at the
corporation yard.
Recommendation #82: The City should construct an overhead canopy for the
LNG fueling station.
12. A NUMBER OF MODIFICATIONS SHOULD BE MADE IN THE PROVISION OF
ROLL-OFF CONTAINERS FOR STREET SWEEPING.
The Street Maintenance Division sued to collect the street sweeping material
collected by Street Sweeper Operators using their own Operator, commercial roll-off
truck, and roll-off containers. This responsibility, and the staff, roll-off truck, and
containers, were transferred to the Integrated Waste Management Division.
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This transfer is appropriate. The Integrated Waste Management Division has
more expertise and resources in solid waste collection than the Street Maintenance
Division. However, this transfer has lead to frustration in the Integrated Waste
Management Division regarding the cooperation of the Street Sweeper Operators in
enabling the cost-effective collection of material. This problem should be addressed by
a number of measures as noted below.
• The drop-off points for roll-off containers should be fixed for each series of street
sweeping districts. These drop-off points should not vary.
• The two Divisions should develop an agreement on the number of containers to
be dropped-off for each series of street sweeping districts.
• The containers should be collected no later than 1:30 p.m.
Logically, the two Divisions chniilri develop a Written Agreement regarding the
services to be provided by the Integrated Waste Management Division and the roles
and responsibilities of the Street Maintenance Division and the Integrated Waste
Management Division.
Recommendation #83: The drop-off points for roll-off containers for street
sweeping waste should be fixed for each series of street sweeping districts.
Recommendation #84: The Street Maintenance: Division and the Integrated Waste
Management Division should develop an agreement on the number of containers
to be dropped-off for each series of street sweeping districts.
Recommendation #85: The roll-off containers for street sweeping material should
be collected no later than 1:30 p.m.
Recommendation #86: The Street Maintenance Division and the Integrated Waste
Management Division should develop a written agreement regarding the services
to be provided by the Integrated Waste Management Division and the roles and
responsibilities of the Street Maintenance Division and the Integrated Waste
Management Division.
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8. ANALYSIS OF RECYCLING
This chapter presents an analysis of the Recycling Section, Integrated Waste
Management Division. The Section and the Division have made considerable progress
in meeting and exceeding the requirements of AB 939. The table below presents data
reported to the California Department of Resources Recycling and Recovery by the City
for the past twelve years.
Reporting Diversion
Year Rate % Biennial Review Status__
1995 _ 23% Board Approved Good Faith Effort
1996 35% Board Approved Good Faith Effort
1997 44% Board Accepted
1998 43% Board Accepted
1999 46% Board Approved Good Faith Effort
2000 46% i Board Approved Good Faith Effort
2001 45% Board Approved Good Faith Effort
2002 45% Board Approved Good Faith Effort
2003 42% Board Approved Time Extension
2004 45% Board Approved Time Extension
2005 53% Board Approved
2006 54°/a Board Approved
The City overall, is recycling 54% of its waste stream, based upon the most recent data
available from the State Department of Resources Recycling and Recovery. This largely
mirrors the diversion state-wide. However, the Matrix Consulting Group believes that the
diversion rate can readily be increased by 15% with the implementation of additional
and expanded recycling programs. The annual 2008 pounds per day of waste disposal
for San Bernardino was significantly higher than other cities with highly effective
recycling programs. This indicates a capacity to enhance diversion.
Since tipping fees amount to $6.8 million in FY 2009-10 for residential,
commercial front-loader, and commercial roll-off programs, a 15% expansion in
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recycling programs can have a significant financial benefit, and an environmental
benefit as well.
However, a number of elements expected in an effective recycling program are
absent in San Bernardino. In addition, the City will need to increase the skill mix of the
staff of the Recycling Section to enhance its recycling program.
1. THE SALARY RANGE OF THE ENVIRONMENTAL PROJECT SPECIALIST
AND ENVIRONMENTAL PROJECT MANAGER SHOULD BE INCREASED.
The Integrated Waste Division has had extreme difficulty in filling the two
Environmental Project Specialist positions. It has also experienced turnover with that
position. The classification is a specialized professional support classification.
Incumbents provide knowledgeable assistance to managers and staff across multiple
City departments on environmental initiatives, impact mitigation and regulatory
compliance. The duties include participation in the development, promulgation and
administration of various environmental projects throughout the City related to
integrated waste management, hazardous waste, air quality, water quality and
community resource management / conservation; providing technical assistance to City
departments on environmental program matters. The classification indicates that the
typical way of obtaining the requisite knowledge, skills, and abilities is graduation from a
four-year college with a degree in environmental or life science, communications, public
or business administration or related field.
The salary range for this classification is $3,105 to $3,774.
This is the same salary range as Street Sign Worker, Supervising Custodian,
Survey Technician, Tree Trimmer I, Senior Business Registration Representative,
Senior Integrated Waste Operator, etc.
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The duties of the Environmental Project Specialist require a higher level of
education and experience, higher level of problem solving, have greater accountability
for a process, and greater discretion than these other classifications. The two
Environmental Project Specialist positions should be expected to accomplish the tasks
noted below.
• One position should perform as a public education specialist conducting duties such
as:
Creation of recycling and solid waste program flyers, mass mailings,
website content and other publications for distribution to general public,
television and radio stations, etc;
Promotion and presentation of recycling to residents and businesses in
such situations as meetings with homeowner associations, the Chamber
of Commerce, or in meetings with manager of corporations located in San
Bernardino;
Involvement in special events such as Earth Day representing the City and
promoting recycling;
Development and execution of annual marketing and publications plan;
and
Coordination with County and regional joint outreach programs regarding
messages, media, etc.
• The other position should perform as a residential and commercial recycling
specialist conducting such duties as:
— Planning, troubleshooting and promoting recycling services provided at
City facilities, schools, homeowner associations, and corporations;
— Outreach to homeowner associations, commercial and industrial business
customers to increase their diversion of waste through source reduction
and recycling, and to increase their use of recycled products;
— Through Special Event Permit process, coordinates recycling and solid
waste services provided to events;
— Coordinates the operations of recycling service provided by solid waste
collection staff of the Integrated Waste Management Division;
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— Interfaces with the City's Green Building Program.
Conducts special studies (e.g. CO2 emissions reduction study).
The salary range of this classification - Environmental Project Specialist— should
be increased. The Matrix Consulting Group recommends that a salary range
comparable to that of Administrative Analyst I would be appropriate - $4,188 to $5,091.
The annual cost of this recommendation, in terms of salary and fringe benefits at the top
step of the range, is presented in the table below.
Annual Cost Annual Cost
Recommendation Increase Recommendation Decrease
The salary range of the $42,700 N /A $0
Environmental Project Specialist
should be increased from $3,105 -
$ - $5 --
I $3 /74 t0$4,1825 -�b,U`J"I. 1
Recommendation #87: The salary range of the Environmental Project Specialist
classification should be increased from $3,105 - $3,774 to $4,188 - $5,091.
2. THE RECYCLING SECTION SHOULD INITIATE A MULTI-FAMILY
RECYCLING PROGRAM.
It is very difficult to develop and sustain multi-family recycling programs.
Nevertheless, the Matrix Consulting Group recommends that the Integrated Waste
Division establish a single stream recycling program for multi-family complexes.
Approximately 10% of the housing units in San Bernardino consist of multi-family
dwellings with two (2) to four (4) units, and approximately 22% of the housing units in
San Bernardino consist of multi-family dwellings with five (5) or more units.73 This is too
significant a population too ignore in enhancing the City's recycling program.
There are several things that can be done to help make recycling in multi-family
complexes convenient and understandable. Setting up convenient carts or bins and
13 City of San Bernardino, Housing Element, July 2003, page 18
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educating tenants are essential to the program's success.
The Matrix Consulting Group recommends the program should include
components noted below.
• Residents of multi-unit buildings should not necessarily be lumped all
together when developing a multi-family recycling program. Residents of
smaller multi-unit buildings with two (2) to four (4) units tend to look much more
like residents of single-family buildings than like residents of buildings with five or
more units. Residents of buildings with two to four units should be treated as part
of the single-family population when constructing waste reduction campaigns.
These residents of smaller buildings are much closer to single-family residents
with respect to recycling behaviors than they are to residents of building with five
or more units.
Residents of buildings with five (5) or more units tend to lag far behind
their single-family and small multi-family building counterparts with
respect to recycling frequency. These larger buildings have a young
population that has not lived in their residence for very long. Their transience
M lakes it hard for them to establish good recycling habits. While larger building
residents' attitudes on recycling, source reduction, and reuse are not typically
dramatically different from their smaller building counterparts, there are a few
structural obstacles that stand out. Residents of larger buildings are typically less
satisfied with the condition of their building's recycling area, are more likely to be
concerned with the mess associated with recycling, and would prefer being able
to consolidate their recycling into one bin. These structural obstacles are not
insurmountable, but require the cooperation of the building manager or landlord
to address. Most residents of larger buildings have their recycling service paid for
by their building, and they get much of their information on recycling from their
residence or building manager. Additionally, a building manager or landlord can
choose whether they will be active promoters of recycling in their buildings, or will
just stop at putting out some recycling bins and hoping people use them. Building
managers play a major part in the level at which the residents of their buildings
are recycling, and instigating change can only happen with active participation
from both landlords and tenants. These large multi-unit buildings with short-term
residents would benefit greatly from the development of simple, standardized
model recycling system that could be implemented in larger multi-family
residences throughout the County. The model should be developed with input
from both tenants and building managers/landlords, and should contain three
main components:
Structural guidelines on how to physically set up a building recycling
system that is easy to learn;
— A system on how to convince residents to make recycling a habit, and;
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Behavior reinforcement tools, which would promote the ongoing
continuation of recycling habits by residents.
If the recycling system in their building is easy to use, habituated, and reinforced,
it is likely that residents will transfer their recycling habits to new residences. A
standardized system across many buildings means that these transient residents
will be more likely to already be familiar with the recycling system when they
move in, shortening the time it takes them to start recycling.
The most effective approach from which to approach standardization,
habituation, and reinforcement of recycling behaviors is to start by working with
the managers of the largest buildings and work down to the smaller buildings.
This should include recycling education classes for the property managers,
preparing and distributing public education materials, distribution of public
education materials and personal recycling bins for tenant use, and adjusting
solid waste and recycling service levels as needed.
• The City should require recycling/waste prevention plans and/or conditions
for multi-tenant projects, in the building permit process. The City of Ontario,
for example has already taken this stop.
The implementation of a recycling program for multi-family dwellings is one of the steps
that the Division should take to enhance its recycling program. The two Environmental
Project Specialists should be responsible for the day-to-day delivery of the program.
The multi-family recycling collection program should include all of the same
features as the single-family recycling collection program
The Matrix Consulting Group recommends that the City phase-in mandatory
participation for multi-family customers in 2012 to precede the Colton sanitary landfill
closure in 2014. Implementation of mandatory participation would have to be carefully
monitored and enforced, since it would be difficult to track violators in some multi-family
complexes.
Recommendation #88: The Integrated Waste Division should establish a single
stream recycling program for multi-family complexes.
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Recommendation #89: Residents of smaller multi-unit buildings with two (2) to
four (4) units should be offered the same type of recycling containers as the
single-family residential recycling program.
Recommendation #90: The recycling program for residents of buildings with five
(5) or more units should be initiated by working with the managers of the largest
buildings and work down to the smaller buildings. This should include recycling
education classes for the property managers, preparing and distributing public
education materials, distribution of public education materials and personal
recycling bins for tenant use, and adjusting solid waste and recycling service
levels as needed.
Recommendation #91: The City should phase-in mandatory participation for
multi-family customers in 2012 to precede the Colton sanitary landfill closure in
2014.
Recommendation #92: The City should require recycling/waste prevention plans
and/or conditions for multi-tenant projects, in the building permit process.
2. THE INTEGRATED WASTE DIVISION SHOULD INITIATE A CONSTRUCTION
AND DE""OLITIO"! RECYCLING PROGRAM.
The Integrated Waste Division is in the process of developing a construction and
demolition waste ordinance. These ordinances have already been adopted by many
other cities in the County including Ontario, Rancho Cucamonga, and Redlands.
Household construction and demolition debris amounts to an estimated 4.5% of
household waste (3,415 tons annually) and 9% of business waste (6,867 tons
annually)."
The first phase of the construction and demolition debris recycling program
should begin with the mandatory approach contained in the ordinance. The Division
should mandate construction and demolition debris recycling for projects over a certain
size through a construction and demolition debris ordinance. This ordinance should
require 100% diversion of all portland cement concrete and asphalt concrete, and an
average of at least 50% of all remaining construction and demolition debris from
14 Department of Resources Recycling and Recovery, Jurisdiction Profile for the City of San Bernardino
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construction, demolition, and renovation projects.
The second phase of the construction and demolition debris recycling program
should include the development of a Green Building Program designed to reach
architects, designers, engineers, builders, contractors involved in building. It should
educate them on construction and demolition debris recycling and reuse and the use of
resource efficient building materials and techniques. Green building focuses on the
efficient use of resources, such as reducing the amount of materials used in
construction; using more durable products and recycled content building materials,
improving energy efficiency and water efficiency, improving indoor air quality in
buildings. This holistic approach provides a more attractive package for building
prVfeJJlvnai$ I tv vv n sumacs co nvern°vd about erNi iron m Pn t a I i s s u es.
The development of this program should include development for the
consideration of the City Council a civic green building ordinance, Residential Green
Building Guidelines (for New Home Construction, Home Remodeling and Multifamily) as
a city Reference Document for private residential construction projects, and LEED as a
city Reference Document for private commercial projects.
The Division should initiate a comprehensive marketing campaign to proactively
influence the definition of green building and drive demand for green homes and
materials.
The Environmental Project manager should be responsible for the development
of this program. Upon its development, the two Environmental Project Specialists
should be responsible for day-to-day delivery of the program.
Recommendation #93: The Integrated Waste Management Division should
mandate construction and demolition debris recycling for projects over a certain
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size through a construction and demolition debris ordinance. This ordinance
should require 100% diversion of all portland cement concrete and asphalt
concrete, and an average of at least 50% of all remaining construction and
demolition debris from construction, demolition, and renovation projects.
Recommendation #94: The Integrated Waste Division should develop a Green
Building Program designed to reach architects, designers, engineers, builders,
contractors. It should educate them on construction and demolition debris
recycling and reuse and the use of resource efficient building materials and
techniques.
Recommendation #95: The Integrated Waste Division, should include develop for
the consideration of the City Council, a civic green building ordinance,
Residential Green Building Guidelines (for New Home Construction, Home
Remodeling and Multifamily) as a city Reference Document for private residential
construction projects, and LEED as a city Reference Document for private
commercial projects.
4. THE INTEGRATED WASTE DIVISION SHOULD ENHANCE ITS
COMMERCIAL RECYCLING PROGRAM
Only one of the twelve commercial front loader collection routes is a recycling
route. Route G-15 is a recycling route. All of the other routes are trash routes. None of
the commercial roll-off routes are recycle routes. In comparison, there are eight (8)
residential recycling routes.
Overall, business and industry generates 60% of California's waste stream. This
waste stream needs to be addressed if the City is to reduce the amount of waste
delivered to the landfill, reduce the costs of tipping fees, and enhance the environment.
The Integrated Waste Division has significant opportunities to enhance the commercial
recycling program. Much of the commercial waste stream consists of paper, food, other
organic, and composite paper and corrugated cardboard. These are all recyclable.
The Division needs to develop and deploy a multi-faceted approach to enhance
its commercial recycling program. This approach is described in the paragraphs below.
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• Business Assistance Program. The two Environmental Project Specialists
should be responsible for the day-to-day delivery of this program. It should
include waste prevention and recycling, but offer a comprehensive environmental
assessment and technical assistance to reduce waste. These assessments
evaluate a company's ability to reduce material use, waste, wastewater, and
energy and water consumption. Recommendations should be provided to help
businesses and institutions cut costs while improving their environmental
performance. This program should include the development and communication
to businesses of a list of the highest priority materials currently disposed to
eliminate from the waste stream, the suggestion of viable alternatives to those
materials and products and where to get them, and the provision of information
and assistance as needed for implementation.
• The City should adopt requirements for institutions and/or businesses of a
certain size to develop and implement recycling plans (for city adoption
and implementation). The County of San Bernardino has developed a Business
Recycling Guide. It includes the methodology for development of a business
recycling plan. Pittsburg, California adopted an ordinance requiring that
businesses develop such recycling plans in 1991.
• The City should phase-in mandatory commercial recycling beginning in
2011. All businesses should be required to subscribe to a minimum level of
recycling service. The City should utilize the same collection containers and
vehicles similar to those provided in the commercial solid waste program for
larger businesses, and use the same type of recyclables accepted in the
residential recycling program for smaller businesses. The Matrix Consulting
Group recommends that the City phase-in mandatory participation for businesses
In 2011 to precede the Colton sanitary landfill closure in 2014.
• The City should develop and deploy a commercial organics waste
collection program. The program should provide commercial organics collection
service through the collection operation. Customers should be able choose from
carts and 1- through 4-cubic yard bins. Collection of organics should be available
up to six days per week. Organics collected should include food scraps; kitchen
papers; waxed cardboard; unpainted untreated small wood; and, plant debris.
Food, plant debris, and other organics represent an estimated 42% of the
commercial waste stream.15
Overall, the City has a significant opportunity to enhance commercial waste diversion.
Recommendation #96: The Recycling Section should establish a business
recycling assistance program.
15 Department of Resources Recycling and Recovery,Jurisdiction Profile for the City of San Bernardino
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Recommendation #97: The City should adopt requirements for institutions and/or
businesses of a certain size to develop and implement recycling plans (for city
adoption and implementation).
Recommendation #98: The City should phase-in mandatory commercial recycling
beginning in 2011.
Recommendation #99: The City should develop and deploy a commercial
organics waste collection program.
5. THE RECYCLING SECTION SHOULD ENHANCE ITS MEDIA AND
OUTREACH PROGRAM.
Long-term solutions to the waste diversion challenges will depend on changing
public attitudes and behaviors. This necessitates that the Recycling Section develop
and deploy multiple public education and information efforts that includes residents,
homeowner associations, the chamber of commerce, and business associations. To
enhance the effectiveness of these public education and information efforts, the Section
should tailor education materials to target specific audiences, such as businesses and
manufacturers; builders and designers; professional landscapers; and schools.
The public education and information efforts should be focused on increasing
participation and/or setout rates for residential curbside, plant debris and food scrap
recycling programs, and for multi-family and commercial recycling programs.
The Section should use a number of media to transmit its message. These
include print media, in the form of brochures, posters, guides, directories and outdoor
advertising; broadcast media.
The outreach programs should include, at a minimum, the following mix of media:
Green Business Certification;
• Residential Green Building workshops;
• Education materials;
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• School Assembly Program (reduce, reuse, recycle, buy-recycled education) for
grades K-8;
• Tours of the Recycling Center;
• Presentations at homeowner associations on reduce, reuse, recycle and buy-
recycled;
• Education and outreach at public and private events
• Movie and theater advertising;
• Chamber of Commerce newsletter insert;
• Recycling Section web site:
• Community and Business Recycle newsletters; and
• Utility bill inserts and announcements.
The challenge for the airy is to transition from a single sueain iCCyuuiy l.,r
single-family customers to a program that includes multi-family customers and
commercial customers. That cannot occur without effective media and outreach
programs.
Recommendation #100: The Recycling Section should develop and deploy
multiple public education and information efforts that includes residents,
homeowner associations, the chamber of commerce, and business associations.
To enhance the effectiveness of these public education and information efforts,
the Section should tailor education materials to target specific audiences, such
as businesses and manufacturers, builders and designers, professional
landscapers, and schools.
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6. THE RECYCLING SECTION SHOULD ADDRESS THE PROBLEM WITH
CONTAMINATION OF RECYCLED MATERIAL.
The table below presents a waste characterization study from July 2009.
Material Total Net %of Total
News 5,960 46%
OCC 2,334 18%
Trash 3,140 24%
Film 260 2%
PET 140 1%
High-density polyethylene -
Natural 80 1%
High-density polyethylene-
Color 180 1%
Metal 210 2%
Aluminum 26 0%
Brown Glass 112 1%
Green Glass 101 1%
Clear Glass 189 10i
Plastic 3-7 100 1%
Total LBS 12,832 100%
This waste represents the recycled waste stream that would be delivered to the
Materials Recycling Facility. As the table indicates, 24% of the recycled material
consisted of trash. The proportion of trash in the recycled waste stream - 24% - is much
higher than benchmarks suggest as appropriate. The proportion should be 10% or less.
This high level of contamination reduces the revenue received by the City for recycled
materials.
The Recycling Section should work to reduce the proportion of contamination to
not more than 10%. The steps that the Section should take to address this problem are
presented in the sections below.
• A recycling guide should be mailed to all residences using utility bill inserts;
Colorful, catchy truck signs with brief "how to" and "did you know" messages
placed on all solid waste collection vehicles in the city's fleet;
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• School outreach materials that will educate elementary and high school children
annually on how to recycle should be developed and distributed;
• Education materials should be distributed at homeowner association and civic
group presentations;
• Television, radio and print advertisements touting the benefits of recycling and
the detriments of contamination should be developed and utilized; and
• Random task force checks of neighborhood containers and truck load audits at
the material recycling facility to track contamination and accumulate data to help
the city determine what factors affect contamination levels (e.g. language
barriers, extra-capacity fees, etc.).
Malicious contamination, however, is not so easily solved. The handful of
residents who "maliciously" contaminate the recycling stream know that items, such as
a bag of trash or grass clippings, are not accepted by the City's recycling program but
throw them in the recycling bin anyway. The problem is, in a city the size of San
Bernardino, a "handful" easily can mean 10,000 residents and a significant negative
impact on the quality of the recycling stream.
Some residents throw excess refuse into the largest capacity container they have
- the recycling bin - to avoid paying an extra-capacity fee. Some customers also throw
bulky items (e.g. microwaves, carpet, etc.) that did not fit into the 60-gallon container
into the recycling container.
The Recycling Section should develop and deploy several enforcement
strategies. These strategies should include the approach noted below.
• Strike 1 - 1st Contamination of the recycling container. The recycling
collection crew should reject the container and leave a warning sticker on the lid.
The Division staff should post out a first warning letter explaining why the
container has been left. The letter should also ask them to contact the Division to
address any issues they may have with the warning.
• Strike 2 - 2nd Contamination of the recycling container. The recycling
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collection crew should reject the bin and leave a warning sticker on the container.
The Division staff should post out a 2nd warning letter explaining why the
container has been left. The letter should also ask them to contact the Division to
address any issues they may have with the scheme. The address should be
passed to the Integrated Waste Field Inspector for a visit on the next collection
day.
• Strike 3 - 3rd Contamination of the recycling container. The Integrated Waste
Field Inspector inspects the container. If the Integrated Waste Field Inspector is
contaminated, the Integrated Waste Field Inspector should knock on the door
and speak to the resident and explain the recycling scheme in a clear, concise
manner and answer any questions the resident may have. The resident should
be left with literature and a list of items the City can accept in the recycling
container. If the resident is not home, a final warning sticker should be placed on
the container lid and a final warning letter should be hand delivered asking for
them to contact the Division. The letter should clearly explain what would happen
from then on.
• Strike 4 - and you're out - 4th contamination and issue of the citation. The
Integrated Waste Field Inspector should inspect the recycling container for the
next three collection CyGieS 1LO UiiIOUi"C III rCJIUGIiI S.Je.-�. the S.heme correctly.
Should the recycling container be found contaminated again formal enforcement
action, additional should be issued.
The recycling collection crews and the Integrated Waste Field Inspector need to work
together to solve this problem. It should include a mix of written warning notices left by
the recycling collection crews, the issuance of citations and fines by the Integrated
Waste Field Inspector, and, ultimately if the resident does not correct their behavior, the
removal of recycling containers.
Recommendation #101: The City should adopt an objective of no more than 10%
contamination of recycled waste.
Recommendation #102: The Recycling Section should develop a media and
marketing program targeted at reducing contamination of recycled waste.
Recommendation #103: The Recycling Section should develop and deploy an
enforcement program for contamination of recycled waste including the issuance
of citations and fines.
Recommendation #104: The Integrated Waste Field Inspector should be focused
on the reduction of the contamination of recycled waste through inspection of
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recycle containers, the issuance of warning notices, and the u=issuance of
citations.
Recommendation #105: The Recycle Section should provide training to recycling
collection crews regarding how to detect contamination, what levels of
contamination are and are not acceptable, and the process for issuance of
warning notices.
7. THE CITY SHOULD REVIEW ITS CONTRACT WITH THE MATERIALS
RECYCLING FACILITY.
That contract apparently provides reimbursement to the City as if the recycling
had a 40% contamination rate. That obviously provides for a much lower level of
reimbursement to the City for recycled materials.
Even thought he City has a 24% contamination rate, that rate is still lower than
provided by the contract with the Materials Recycling Facility.
The City should renegotiate the contract with the Materials Recycling Facility
contractor. The contamination rate in the contract should reflect actual rates based upon
samples of the waste stream, and not 40%. Ultimately, the City should work to reduce
the contamination rate below 10%.
Recommendation #106: The City should renegotiate the contract with the
Materials Recycling Facility contractor. The contamination rate in the contract
should reflect actual rates based upon samples of the waste stream, and not 40%.
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9. ANALYSIS OF ADMINISTRATION
This chapter presents an analysis of the plan of organization for the Integrated
Waste Division, the policies and procedures, training and skill assessment of the
Division's staff, safety procedures, quality assurance programs, goals, objectives, and
performance measures, strategic planning, and the performance appraisal system.
1. THE PLAN OF ORGANIZATION FOR THE INTEGRATED WASTE DIVISION
SHOULD BE MODIFIED.
The existing plan of administrative organization for the Integrated Waste Division
is presented in the exhibit following this page. Important points to note regarding the
plan of organization are presented below.
• The Integrated Waste Division Manager has three managers I supervisors
reporting to him / her and four support staff. The support staff includes the
Departmental Accounting Technician, Executive Assistant, Senior Office
Assistant, and the Integrated Waste Field inspector.
• The Integrated Waste Operations Supervisors have widely varying spans of
control. These range from fourteen (14) routes for each of the two residential
supervisors to twelve routes for commercial front loaders and seven routes for
commercial roll-offs.
• While the Division's budget includes eight (8) staff for Right-of-Way
Maintenance and five (5) staff for street sweeping, these staff actually are
located organizationally in the Street Maintenance Division. The Division's
budget includes these thirteen positions, but the supervision of these staff is
provided elsewhere.
The Matrix Consulting Group recommends a number of modifications for the plan
of organization of the Integrated Waste Division. These modifications are presented
below.
• The Senior Office Assistant should report to the Integrated Waste Division
Operations Manager. Integrated Waste Division Operations Manager should
provide day-to-day supervision and the performance appraisal of the Senior
Office Assistant.
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Management Study of the Integrated Waste Management Division
As the number of residential routes are reduced through balancing of these
• routes and increasing their route size, the number of routes supervised by
the residential supervisors should be reduced. At present, it exceeds
recommended spans of control. The number of routes should be no more than
twelve.
• The responsibility for supervising street sweeping should be transferred to
the Integrated Waste Division. The commercial roll-off supervisor should
supervise the street sweeping program working through the Lead Motor Sweeper
Operator.
• The Right-of-Way Maintenance staff should report to the Integrated Waste
Operations Manager. The Right-of-Way Maintenance staff are presently
supervised by a Maintenance Supervisor. This Maintenance Supervisor should
report to the integrated Waste Operations Manager. This would increase the
number of supervisors reporting to the Integrated Waste Operations Manager
from four (4) to five (5). This is not a burden.
• The Integrated Waste Field Inspector should report to the Integrated Waste
Operations Manager. The working relationship between these two positions is
led • ' to reduce the
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extent to which commercial bin containers are blocked with waste, their weight
exceeds allowances, etc.
Overall, the revised plan of organization attempts to resolve problems that have
occurred in the past in the working relationship between street sweeping and solid
waste collection. It also attempts to broaden the responsibility of the Division to include
street sweeping and right-of-way maintenance to reflect a role of keeping San
Bernardino beautiful not just in its solid waste collection practices, but also in its right-of-
way.
Recommendation #107: The Senior Office Assistant should report to the
Integrated Waste Division Operations Manager.
Recommendation #108: The number of residential routes should be reduced to
reduce the span of control for the residential supervisors to twelve routes each
by balancing of the residential routes and increasing their route size.
Recommendation #109: The responsibility for supervising street sweeping should
be transferred to the Integrated Waste Division. The commercial roll-off
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supervisor should supervise the street sweeping program working through the
Lead Motor Sweeper Operator.
Recommendation #110: The Right-of-Way Maintenance staff should report to the
Integrated Waste Operations Manager.
Recommendation #111: The Integrated Waste Field Inspector should report to the
Integrated Waste Operations Manager.
2. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP A
CLEARLY WRITTEN FIVE-YEAR STRATEGIC PLAN.
Public sector managers are often so preoccupied with immediate issues that they
lose sight of their ultimate goals. That's why a strategic plan is a virtual necessity. It may
not be a recipe for success, but without it the Integrated Waste Management Division is
less likely to achieve its goals. A sound plan should:
• Serve as a framework for decisions or [Or securing support / approval,
• Explain the goals and objectives of the Department to others in order to inform,
motivate and involve;
• Assist benchmarking and performance measurement; and
• Stimulate change and become the building block for the next plan.
The best practices regarding development of a strategic plan that should be
utilized by the Division are presented in the table below:
The Division has a multi-year strategic plan with annual goals and measurable objectives based
on identified needs, projected workload, and expenditures and revenues.
The department maintains and publishes a clearly written, multi-year(five years at a minimum)strategic
Ian to provide vision and direction for the division. The plan links citywide and department goals.
In developing the strategic plan, the division:
Identifies and formally adopts a limited number(5 to 10)of division priorities to guide the division's
strategies and major financial and program decisions;
Considers the impacts of the city's financial condition, current expenditures by the division, and
opportunities to reallocate staff and other resources to enhance performance; and
Instructs division managers and supervisors on how these priorities should be considered in making
program and budget decisions.
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The strategic plan clearly delineates the division goals, and objectives and strategies for achieving them.
In developing these strategies, the department considers alternative service delivery systems such as
outsourcing.
The plan also delineates the priorities the City Council and City Manager assign to its goals,objectives,
and strategies.
The objectives in the strategic plan are measurable, and the division has set annual objectives for each
goal for at least five ears into the future.
The division's goals, objectives, and performance measures are based on past performance, identified
needs, projected workload, and expenditures and revenues.
The plan delineates the managers responsible for implementing the strategies in the plan and the time
frames for implementation.
The division manager annually assesses the progress the division has made toward achieving the goals
and objectives in the plan.
In developing the strategic plan for the department, the Division should (1)
identify its strengths, weaknesses, threats (e.g., slowdown in growth of City revenues),
and opportunities (e.g., increased use of technology); (2) develop a vision and mission
statement for the Division; (3) define the goals, objectives and strategies the Division
will utilize to achieve those goals, objectives and strategies; and (4) define the
managerial and supervisory responsibilities for accomplishing those goals, objectives
and strategies.
The Administrative Analyst II should be responsible for facilitating the
development and implementation of the Department's strategic plan.
Recommendation #112: The Integrated Waste Management Division should
develop a clearly written, five-year minimum, Strategic Plan.
Recommendation #113: The Administrative Analyst 11 should be responsible for
facilitating the development and implementation of the Division's strategic plan.
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3. EACH SECTION WITHIN THE INTEGRATED WASTE MANAGEMENT
DIVISION SHOULD DEVELOP GOALS, OBJECTIVES, AND PERFORMANCE
MEASURES.
Each section head should be held accountable for developing goals, objectives,
and performance measures and presenting them to the Integrated Waste Division
Manager each year as part of their budget proposal at the program level.
Goals should be developed for each section with objectives developed for each
cost center or activity such as commercial roll-off collection, residential recycling
collection, residential trash collection, and the like. Performance measures should then
be developed to assess the workload, efficiency, and effectiveness with which these
objectives are accomplished.
The development of goals, objectives and performance measures at the program
level by the Division should consider the guidelines presented below.
• Goals could be developed for each section and each program within a
section. These goals could give specific direction on how the sections, and the
programs within these sections, will contribute to the mission and goals of the
Division. These goals should be not quantifiable. These goals should span
multiple years.
• Objectives could be developed for each program. Objectives are outcome-
based statements of what specifically will be achieved within the fiscal year.
Each program could have 3 to 5 objectives. The objectives could clearly
demonstrate progress toward the goal of the program. These objectives could be
written to allow measurement of progress, and be quantifiable.
• Performance measures could be developed for each objective. Performance
measures could convey the extent to which an objective has been met. These
measures could include a range of indicators including input, output, efficiency,
service quality and outcome.
• The Division should develop reliable and accurate data to measure
performance. Each performance measure needs a consistent reliable data
source. The Division could acquire and install the performance measurement
systems necessary to develop good data sources.
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• The Division should communicate and use performance measurement data
for decision-making and accountability reporting. Managers and supervisors
of the Division should communicate their commitment to the value and use of
goals, objectives, and performance measures to all managers and supervisors.
Management should involve line managers and staff in the development and
reporting of goals, objectives, and performance measures. The Division
managers should communicate the results of these goals, objectives, and
performance measures internally to its staff.
Each section head should report quarterly to the Integrated Waste Division
Manager regarding their progress in achieving their goals and objectives using the
performance measures as a measure of progress.
The Administrative Analyst II should be assigned responsibility for providing
training and technical assistance to the Division's managers and supervisors in the
development of goals, objectives, and performance measures. The Administrative
Analyst II should be assigned responsibility for providing training and technical
assistance to managers and supervisors as needed for collecting the data needed to
track their activities against established goals, objectives, and Administrative Analyst II,
and a report generated monthly to the Integrated Waste Division Manager.
Recommendation #114: The Integrated Waste Management should develop goals,
objectives, and performance measures.
Recommendation #115: The Administrative Analyst II should be assigned
responsibility for providing training and technical assistance to the Integrated
Waste Management Division's managers and supervisors in the development of
goals, objectives, and performance measures.
Recommendation #116: The Administrative Analyst II should be assigned
responsibility for providing the necessary training and technical assistance
required for collecting and reporting performance measurement data.
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4. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP A
FORMAL OPERATOR TRAINING PROGRAM.
The Integrated Waste Management Division lacks a formal equipment operator
training program to provide training in the operation of heavy equipment such as
commercial roll-off trucks, automated side loader trucks, commercial front loader trucks,
etc.
The Division should develop such a program to establish a standardized process
by which operators may advance through the progressive job classifications and so that
the Division can be sure that its employees have been certified to operate heavy
equipment before their actual use. Employees should be required to successfully
complete operator safety instruction, and operator effectiveness instruction consisting of
classroom instruction and on-the-job equipment instruction. Training, for example, for
operation of a commercial front loader could include such aspects as the following:
• Compliance with all traffic laws during vehicle operation;
• Operation of the equipment for engaged, attentive, defensive and safe driving at
all times;
• Proper seat belt use 100% of the time;
• Driver communication of hazards and issues;
• Communication with other city departments to help mitigate liability risks of pot
holes, low lying tree limbs, uplifted sidewalks, surfacing sewage, etc.
• Operations to safely handle aggressive or reckless drivers
• Systems and pre-planning for routes and pick up sites;
• Walk-a-rounds at new pick up sites to check for property hazards, clearances,
overhead wires;
• Route planning to avoid dangerous traffic and railroad crossing conditions;
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• Proper traffic clearances at all stops;
• Proper use of rear and front view cameras and other safety equipment with driver
accountability for use;
• Walk-around policy to check for back up hazards when cameras do not reveal
area;
• Walk-around policy to check for back up and front hazards, children playing in
area, and other vehicles parked too close;
• Routes planned to minimize back up operations;
• Route size and pick up number balanced to assure time is allowed for safe
operations;
• At least a half hour lunch break, and other scheduled breaks;
Driver accountability and discipline system in place for preventable driver
mistakes;
• When bins are placed, inventory potential hazardous materials in waste and
trash with users;
• Proper use of PPE;
• Proper handling of bio-waste, sharps and hazardous wastes, with proper PPE
use, and proper hygiene practices; and
• Proper equipment egress with three-point contact and no jump offs when exiting
trucks.
The Integrated Waste Management Division should develop a formal equipment
operator training program. Participation by Operators should be mandatory.
Recommendation #117: The Integrated Waste Management Division should
develop an equipment operator-training program for the proper and safe use of
solid waste collection equipment. Participation by Operators should be
mandatory.
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5. POLICIES AND PROCEDURES FOR THE INTEGRATED WASTE
MANAGEMENT DIVISION SHOULD BE CLEARLY DOCUMENTED.
The Integrated Waste Management Division should develop a policies and
procedures manual to guide its managers and supervisors and assure uniformity in the
critical processes of the Division.
In developing policies and procedures for the Division, the following approach
should be utilized.
• Minimize. The policies and procedures should be kept to a minimum.
• Best Methods. Make certain the procedure represents the "best method". This
means the proredure has undergone detailed analysis and is continually
challenged.
• Review and Revise. All policies and procedures should be reviewed annually.
• Keep Current. The problem with many policies and procedures is that they have
long ago outlived their usefulness. No one remembers why the policies and
procedures were created in the first place. Sometimes they contradict each other
and create even more confusion. Responsibility for updating these policies and
procedures should be clear.
• Short is better than long. It is not the quantity, but the quality of information that
is the essential problem of the information age.
• Be ready to change. The key to organizational effectiveness and efficiency is
finding a better way. The Division must always be ready to challenge current
policy — throw it out— change it.
• The policies should be available on the Division's intranet site. This should
facilitate easy updating.
The Administrative Analyst II should be assigned responsibility for providing
training and technical support to the Division's managers and supervisors in the
development of the policies and procedures manual.
Recommendation #118: The Integrated Waste Management Division should
clearly document its policies and procedures.
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Recommendation #119: The Integrated Waste Management Division should
establish a policies and procedures committee, consisting of five to seven staff,
that includes a representation of staff at all levels in the Division.
Recommendation #120: The Administrative Analyst II should be assigned
responsibility for development of the policies and procedures manual working
with the committee.
6. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD DEVELOP A
TRAINING PLAN FOR ITS EMPLOYEES INCLUDING A NEEDS
ASSESSMENT.
The American Society of Training and Development reported in their State of the
Industry in Leading Enterprises a sample of twenty-two large Fortune 500 companies
and public sector organizations with 70,487 employees provided an average of 41 hours
of training per employee per year.
The integrated Waste Management Division should develop a forma, written
training plan to address the challenge of providing sufficient training to its employees.
Development and execution of a well-conceived training plan is the cornerstone upon
which a successful training program rests. A training plan exists on at least two levels:
• Division-wide - encompassing the entire division and covering a relatively elastic
time period of several years (this is a reflection of a strategic plan or overall set of
goals); and
• Section-specific - describing sections within the division and covering a discrete
fiscal or calendar time frame (this is a reflection of concrete, measurable goals
and objectives).
In developing a training plan, the Division should link the skill development of its
employees to its own strategic plan and an assessment of its strengths and
weaknesses. The Division should strive to achieve the best practices presented below
in developing this training plan.
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The division provides a comprehensive staff development program to achieve and maintain high levels
of productivity and employee performance.
The division:
Conducts orientation programs for all new employees, and includes information on division
procedures, performance expectations and evaluations, training and career opportunities, and
personnel policies regarding such issues as absences, leave approval and tardiness;and
Has a division-wide training program and maintains training records on each staff member.
The division has solicited and used input from supervisors and employees hired within the last three
years to establish', revise, or affirm its new employee orientation programs, including content and
approach.
The division has mentoring programs, as appropriate, for new employees.
The division plans training programs based on division-wide needs assessment that includes input from
employees and their supervisors at least every other year.
The division establishes and implements formal staff development plans to provide on-going training for
employees.The responsibility for training classes for employees may be delegated to a section within
the division, but that unit provides the Integrated Waste Division Manager with copies of training plans,
training schedules, and attendance rosters.
The division has procedures to evaluate individual in-service training activities, including employee
feedback, and to evaluate the extent to which annual training efforts have met identified long-term
training objectives.
The division provides a comprehensive staff development program for managers and supervisors.
All managers and supervisors have completed (or anticipate completing within the current fiscal year)
management and supervisory training programs.
The division has a process for identifying employees with the potential for employment in managerial
and/or supervisory positions, and for providing training to them prior to appointment to a managerial
and/or supervisory osition.
The training program for new managers includes a mentoring component.
The Administrative Analyst II should be assigned responsibility for providing
training and technical support to the Division's managers and supervisors in the
development of the training plan.
Recommendation #121: The Integrated Waste Management Division should
develop a training plan for its employees based upon a needs assessment.
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7. THE INTEGRATED WASTE MANAGEMENT DIVISION SHOULD ESTABLISH
A CAREER DEVELOPMENT PROGRAM FOR ITS EMPLOYEES.
The old career model of remaining with one organization for an entire career and
in one classification series and one division has become outmoded. Employees now
make lateral moves, work for three to ten organizations, and change professions. This
new model requires employees and the organizations that they work for to be adaptable
and flexible, continuously learning, and upgrading the skills of the employees and the
organization.
Career development is the ongoing acquisition or refinement of skills and
knowledge, including job mastery and professional development, coupled with career
planning activities.
Since career development is an ongoing, dynamic process, employees would
need encouragement and support in reviewing and re-assessing their goals and
activities. Formal training and classes away from the job are effective in providing new
information, but adult learners also need to practice new skills. Therefore, the Integrated
Waste Management Division can contribute significantly to your staff member's career
development by supporting career development activities within the Division.
The Division's support for career development is important for a number of
reasons including the following:
• A focus on skill development contributes to learning opportunities that benefit
both the employee and the Division;
• Career development enhances opportunities for employee promotion and/or
lateral moves that contribute to an employee's career satisfaction;
• The Division should promote a greater sense of employee responsibility for
managing their own career;
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• Career planning and development clarifies the match between the Division's and
an individual employee's goals;
• It's cost-effective for the Division to use its own staff talent to provide career
development opportunities within the Division — recruitment and selection costs
are reduced and positions are vacant for a less amount of time;
• Career development increases employee motivation and productivity; and
• Attention to career development helps the Division attract top staff and retain
valued employees.
The Division should take a number of steps to develop a career development
program within the Division as noted below.
• Annually, the employee's supervisor should develop an individual development
plan and career discussion with his or her employees;
• Supervisors should be held accountable for supporting employee development
efforts;
• The Division should create programs and activities to provide skill development,
such as job rotation, cross-training, mentoring, internships, coaching, and career
strategy groups;
• The Division should recognize that part of the development of the career plan for
the employee should include providing support and/ur release Lirne for
development beyond their current jobs; and
• The Division should support requests for flexible work arrangements from staff
members.
Recommendation #122: The Integrated Waste Management Division should
develop a career development program for its employees.
8. THE CITY SHOULD ADOPT A CONSTRUCTION STREET IMPACT FEE.
There are numerous factors contributing to the deterioration of pavement. These
factors include environmental conditions (e.g., rain, extreme temperatures, etc.), tire
pressure and vehicle suspension characteristics, vehicle weight, number of axles, and
frequency of use.
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Research conducted by the American Association of State Highway Officials
(AASHTO) indicates that wear and deterioration of pavement increases geometrically
with increases in axle weight. In other words, doubling the weight on an axle increases
the damage and stress to the pavement 16-fold. This research also suggested that the
damage caused by one fully loaded, 80,000 pound five-axle truck is the equivalent of
9,600 automobiles in terms of damage to the pavement.
Other studies, beyond those conducted by AASHTO, have also shown that truck
traffic causes considerably more damage to streets than passenger vehicles and that
truck traffic accounts for up to 60% of the damage to the streets. Several references
and citations regarding the impact of heavy truck traffic on local roads have been found.
Among these are the following:
• UC Berkeley Institute of Transportation Studies, Pavement Research Center;
• The University of California Transportation Center;
• University of California Davis Institute of Transportation Studies, Pavement
Research Center in conjunction with California Department of Transportation
CalTrans;
• Kansas Department of Transportation K Trans Research Program;
• Urban Renaissance Institute, Toronto, Canada; and
• Illinois Department of Transportation
The studies cite the impact and cost of heavy truck traffic on various road types. They
state that, compared to passenger vehicles, truck traffic is from 29,000 to 160,000 times
more damaging to roads depending on the size of the truck.
A number of local governments have chosen to charge a construction street
impact fee including a solid waste collection impact fee. These include such California
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local governments such as Richmond, Irvine, Marin County, San Rafael, Menlo Park,
Union City, Petaluma, etc. This impact fee is typically charged as a percentage of the
building permit valuation.
The City should adopt a construction road impact fee. The adoption of this fee
will require that the City conduct a nexus study. The purpose of this nexus study is to
identify the connection between new development that occurs within San Bernardino
and the need for improved facilities within the area of benefit, for which San Bernardino
is the service provider. After establishing the nexus, the impact fees are calculated
based upon the proportionate share of the total facility use for the new development.
Recommendation #123: The Public Services Department should contract for a
nexus study to enable the City to charge a construction street impact fee.
Recommendation #124: The City should adopt a construction road impact fee.
9. THE CITY SHOULD NOT OUTSOURCE THE COLLECTION OF SOLID
WASTE.
It is a common misperception to presume that the private sector is always more
efficient than the public sector in service delivery. In Phoenix, for example, beginning in
July 2009, the City was awarded Service Area 6 (southwest Phoenix) solid waste
collection contract through a managed competition process; the City provides these
same services in the other five existing service areas.
In the City's present financial condition, there has been discussion of the
potential financial relief that could be provided to the City by outsourcing the City's solid
waste collection services. Numbers have been tossed around that the City could garner
$30 million to $50 million if it "sold" its franchise and outsourced these services.
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The R3 Consulting Group, in their May 2008 Business Plan for the Integrated
Waste Management Division, stated that "R3 does not believe it is in the City's best
interest to consider privatization of the Division functions at this time for the following
reasons.
• It is not possible to accurately determine costs, revenue, number of accounts,
billing errors by LOB [line of business] and any private hauling company would
want an accurate accounting to customer levels to determine a reasonable
"value"of the contract.
• The City would need to receive approximately $4.7 - $6.0 million in annual
franchise fee payments to account for lost revenue to the General Fund, Water,
Fleet Services, and to provide for Street Sweeping Services.
— Currently the City provides approximately $400,000 in "free" City Services
that is
— Currently, approximately $2.7 million is transferred from Division to the
City Generai Fund.
— Currently the direct cost of providing Street Sweeping services is
approximately$1.6 million/year (including capital and operating reserves).
— Currently the Division pays approximately $90,000 to the Water
Department for billing services. The cost for Water billing approximately
39,500 solid waste accounts
— Currently the Division pays approximately$1.8 million to Fleet Services for
vehicle maintenance (excludes fuel). Some, but not all of this cost would
be eliminated.
• The City's rolling stock has little or no value.
— Of the City's fleet of 98 vehicles, 19 are less than 2 years old, most are
over 5 years old, are not CARB compliant and have minimal or no market
value.
— Residential carts have no market value due to age and condition and will
need to be replaced.
— The City's commercial bins have low market value due to age and
condition, and bins that have not been replaced or refurbished will need to
be replaced or refurbished.
— The City's roll-off containers have little or no market value due to age and
condition and will need to be replaced'.
• A private hauler would likely have to increase the City's current customer rates.
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— Similar to the City, a private hauler will need to capitalize containers and
vehicles at an estimated cost of$25 million.
— Similar to the City, a private hauler will need to conduct a billing audit of all
accounts and implement a new Customer Information System.
— A private hauler would likely incorporate up-front cash payments to the
City into its customer rates.
— A private hauler would need to make annual franchise fee payments to —
A private hauler would need to operate on a 10+% operating ratio to meet
corporate profit requirements."
While some of these conditions no longer exist (e.g., the City's rolling stock has
little or no value), much of these same conditions continue to exist. For example, the
City would need to collect approximately $8.1 million in additional annual revenue to
compensate for the lost revenue to the General Fund, Water, Fleet Services, and to
provide for Street Sweeping Services (not the $4.7 to $6.0 million mentioned by R3
Consulting Group) if these services were outsourced.
This is equivalent to 30% of gross revenue collected by the Refuse Fund. This
exceeds that proportion of gross revenue collected by any city in San Bernardino or
Riverside counties that responded to a survey (twenty-nine cities responded).
While some of the costs incurred by the City in support of the Division would be
eliminated should the City outsource solid waste collection services (e.g., Fleet Services
Division), most of these costs would remain. Even if all of the costs associated with
Fleet Services were eliminated with outsourcing (which would not occur with the
overhead costs within that Division), the percentage of gross revenue collected by the
City would still amount to 21%. Only one city in San Bernardino or Riverside counties
exceeds that percentage and one other city equals that percentage (out of twenty-nine
cities reporting).
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The difference between the 21% and the median of 10% charged by the twenty-
nine (29) cities reporting in San Bernardino or Riverside counties amounts to $2.1
million annually. If the City was able to obtain $30 million to $50 million if it "sold" its
franchise and outsourced these services, the City would begin to "lose" money in that
"sale" in fifteen (15) to twenty-five (25) years. While the sale may "kick the can" of the
City's financial condition down the road for a significant period of time and help the City
bridge itself through its current financial problem, the Matrix Consulting Group views the
Integrated Waste Division as an underperforming asset.
The Division needs to markedly improve the productivity of its solid waste
collection staff in residential solid waste collection (trash, recycle, and yard waste) and
III GVIIIIIItlI Vltll IVII-VII VICWJ. i not meet prow u,v+ly
ug
hese crews do :wi+.,,..,ro, �•a-v
due to obsolete route management and collection practices of the Division and not due
to lack of effort by these crews [commercial front loader crews do meet the
benchmarks]. The Division management should work with the crews to resolve these
gaps between existing performance and these benchmarks. The Division has significant
capacity to absorb growth of residential and commercial accounts and increase
revenues without an increase in costs, and thereby provide higher levels of financial
support for the General Fund since reimbursement is typically calculated as a
percentage of gross revenue without negatively impacting the Integrated Waste
Division's ability to provide responsive services.
If these problems prove intractable within the next three years, the City should
"sell" or outsource its solid waste collection franchise.
Recommendation #125: The City should not immediately "sell" its solid waste
collection franchise.
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Recommendation #126: The management of the Integrated Waste Division should
address the productivity problems within the Division that limit the ability of the
Division to provide higher levels of support to the General Fund without
negatively impacting the Integrated Waste Division's ability to provide responsive
services.
Recommendation #127: If the productivity problems within the Integrated Waste
Division prove intractable, the City should "sell" or outsource its solid waste
collection franchise.
10. THE CITY SHOULD INCREASE THE FRANCHISE FEE THAT IT CHARGES
TO THE REFUSE FUND FOR THE COST OF SUPPORT PROVIDED BY THE
GENERAL FUND TO THE REFUSE FUND.
At the present time, the City charges a "franchise fee" to its Refuse Fund to
reflect the costs of providing support to the fund for such services as information
technology, human resources, legal counsel, etc. The City presently charges
$1 ,980,000 annually for these services. This amounts to 7% of the gross revenue
received by the Refuse Fund. However, if other line item costs were included that could
be considered reimbursement to the general fund such as rent for the use of the
corporation yard, reimbursement for the cost of the NPDES Coordinator, etc., the
amount of reimbursement would amount to 10% of gross revenue received by the
Refuse Fund. [This excludes the reimbursement Street Impact fee and reimbursement
for Graffiti / Illegal Dumping since those charges should not be considered General
Fund reimbursement, but direct costs of the provision of solid waste collection services].
The percentage charged by the City is at the median of the twenty-nine other
cities in San Bernardino and Riverside counties that reported this information. It is less
than the average (12%), however, and less than the 75`h percentile (15%).
The Matrix Consulting Group recommends that the City increase the franchise
fee that it charges to the Refuse Fund to 15% of gross revenue.
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This would result in an increase of $1.2 million annually in reimbursement to the
General Fund by the Refuse Fund; this level of reimbursement would increase as the
gross revenue increased. Additionally, the Refuse Fund should reimburse the General
Fund for the support provided to the Refuse Fund over the past five-years for which the
General Fund did not receive reimbursement. In essence, this would be a repayment of
what could be considered a "loan" by the General Fund to the Refuse Fund. The
repayment of this "loan" should be made as an annual repayment each year over the
next five years in an amount approximating $1.2 million annually. At that point in time,
the "loan" by the General Fund to the Refuse Fund should be considered as having
been repaid.
he [0[al increase In reimbursement slLvuid proximate $2.4 million, annually. Thnis
should consist of the following:
• $1 .2 million annually in increased franchise fees and
• $1.2 million annually for a period of five-years to repay the "loan" made by the
General Fund to the Refuse Fund for support services.
Recommendation #128: The Refuse Fund should increase the "franchise fee" that
it pays to the General Fund to 15% of gross revenues.
Recommendation #129: The Refuse Fund should reimburse the General Fund for
the extent of under recovered support costs with an additional payment of $1.2
million annually for a period of five-years. At that point in time, the "loan" by the
General Fund to the Refuse Fund should be considered as having been repaid.
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APPENDIX 1
VEHICLE SERVICE AGREEMENT
INTERDEPARTMENTAL SERVICE LEVEL AGREEMENT
AND MEMORANDUM OF UNDERSTANDING
BETWEEN THE INTEGRATED WASTE MANAGEMENT DIVISION AND THE FLEET
SERVICES DIVISION
OVERVIEW
The Fleet Services Division (FSD) of the City of San Bernardino is dedicated to
providing our customers with high quality, timely and cost-effective fleet services. We
recognize that our customers deliver essential services to the citizens of San
Bernardino and must receive a high level of fleet services in order to accomplish their
missions. Simply stated, when vehicles are out of service, our customers cannot do
their jobs. Therefore, while we are committed to providing services at the lowest price
possible, our Primary focus will be on activities that lead to maximizing vehicle
availability and minimizing the operational impact of repair services. We are also
committed to the following principles:
1. We will focus on asset management activities that conserve the value of
equipment investments and will provide our customers with value added services
that result in lower fleet ownership costs.
2. We will be the low cost provider of the services that we offer.
3. All services that we provide will be of the highest quality available in the
equipment industry.
4. We will understand our customers' needs and will meet these needs effectively,
responsively and courteously.
Fleet Services is required to provide a stated level of service to all its customers under
an overall operating agreement with the City. This Customer Services Agreement
provides some customization of the services offered to the Integrated Waste
Management Division by FSD while staying within the overall agreement with the City.
Included are procedures for accessing services, service prices and billing procedures,
and a description of FSD's and Integrated Waste Management's responsibilities under
this agreement.
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SERVICES PROVIDED BY FLEET SERVICES
FSD provides a full range of transportation related services as described below:
• Fleet policy development
• Equipment replacement planning
• Equipment specification preparation
• Equipment selection and purchase coordination
• Fuel program development
• Equipment utilization review
• Preventive maintenance program development
• Comprehensive equipment maintenance and repair services
• Vendor repair coordination
• Vehicle towing services
• Roadside tire repair services
• Collision damage repair services
• Loaner vehicle rentals
• Driver and operator training
• Radio equipment installations/deinstallations
• Surplus equipment disposal
SCOPE OF SERVICES TO BE PROVIDED TO INTEGRATED WASTE
MANAGEMENT DIVISION
FSD will provide Integrated Waste Management with high quality, timely and cost-
effective vehicle and equipment services as described below:
1. Preventive maintenance (PM) program.
PM Focus. A comprehensive PM program is the cornerstone of effective fleet
maintenance. The objective of a PM program is to minimize equipment failure by
maintaining a constant awareness of the condition of equipment and correcting
defects before they become serious problems. A PM program minimizes
unscheduled repairs by causing most maintenance and repair activities to occur
through scheduled inspections. An effective PM program pays dividends not
only in improved equipment safety and reliability, but also financially by extending
the life of equipment, minimizing the high cost of breakdowns, and reducing lost
employee productivity resulting from equipment downtime. FSD will focus efforts
on behalf of Integrated Waste Management on PM activities as described below:
PM Service Types. Three types of PM services will be provided. PM-A or Lube
Oil Inspection service will consist of an oil & filter change, and a comprehensive
safety inspection. PM-B or a General Inspection service will consist of a oil &
filter change, a brake system inspection, engine performance check,
transmission service, electrical, cooling, exhaust system check, overall vehicle
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check including mounted bodies and accessories. NC Inspection service will
consist of the mandated North Carolina State Inspection.
PM Schedule. Integrated Waste Management sedans, light trucks and medium
duty trucks will be scheduled for PM every 6,000 miles or 6 months whichever
occurs first. Refuse trucks will be scheduled every 4 months or according to the
manufacturers' recommended service schedule.
Reoair Authorization. Integrated Waste Management will be contacted for
authorization before any remedial repairs found during a PM inspection which are
estimated to cost in excess of $2,500 for heavy equipment and $1,000 for light
equipment. Integrated Waste Management agrees to provide a decision on
repair approval as soon as possible after being contacted by FSD. Downtime
and repair turnaround time calculations shall not include time waiting for repair
authorization.
Scheduling PMs. FSD will track maintenance of Integrated Waste Management
vehicles in our EMIS system and will call, FAX or E-mail a PM schedule to the
appropriate supervisor monthly. FSD will coordinate scheduling of services with
the appropriate supervisor for a date and time that is convenient to Integrated
Waste Management and at a time where workload requirements are such that
the above turn around times can be met.
After Hours or While You Wait Service. FSD will provide Integrated Waste
Management vehicles with the highest priority possible. All PM services will be
scheduled at Integrated Waste Management's convenience. Integrated Waste
Management may choose to wait for sedans or light trucks receiving a lube & oil
service. These services will be completed in one hour or less, unless needed
repairs are discovered during the component inspection of the service.
Integrated Waste Management may also choose to have PM services completed
after hours. Vehicles must be dropped off at the appropriate shop no later than
4:OOpm and will be available for pickup no later than 7:OOam the next morning.
All PM services for collection vehicles and medium trucks will be completed after
hours or on scheduled idle days. These units must be dropped off by 4:OOpm
and will be available for pickup no later than 6:35am. Hours can be adjusted for
seasonal equipment operation. Integrated Waste Management agrees that units
scheduled for PM will be brought to the Shop rather than parked in the Integrated
Waste Management lot. Integrated Waste Management agrees that FSD will
charge one-half hour of labor for retrieving units that are scheduled for PM and
are mistakenly parked in Integrated Waste Management lot.
PM Compliance Goal. FSD will achieve a PM compliance rate of 95% for
Integrated Waste Management's vehicles. That is, 95% of scheduled services
will be completed before they are overdue. As services will be scheduled on the
basis of miles and/or elapsed time, upon request, Integrated Waste
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Management will provide FSD with an annual odometer reading report for all
vehicles.
Rescheduling PM Services. Integrated Waste Management agrees to cooperate
in scheduling PM services by responding promptly to PM scheduling requests
and by honoring PM appointments. If operational priorities require rescheduling
of a PM appointment, then Integrated Waste Management agrees to do so at
least 24 hours in advance of the original appointment by calling or e-mailing the
appropriate Shop Manager. Missed appointments with no call will not count
against FSD's achievement of the PM compliance goal.
2. Vehicle repair services
Morning Priority Service. FSD will send a technician to the Integrated Waste
Management parking lot every morning at 6:00 am to provide assistance in
starting shift operations. Services to be provided will include starting vehicles
with dead batteries, trouble shooting brake systems, packing system problems,
and performing any other tasks that will expedite vehicle availability.
Pit Stop Service. FSD will provide morning pit stop service at Fleet Services to
complete any quick repairs that cannot be completed by the tech nician at the
Integrated Waste Management lot. Quick services are those that can be
completed in one hour or less. This service will be the highest priority for
technicians.
Holiday Service. Upon request FSD will provide service on holidays when
Integrated Waste Management is in operation. Hours of service will mirror those
worked by Integrated Waste Management. Normally, two mechanics will be
assigned to work these days. FSD reserves the right to compensate mechanics
at time and one half. FSD will focus on Integrated Waste Management vehicles
on these days. If no Integrated Waste Management vehicles are available to
work on, then FSD will work on other customers' vehicles and bill their time to
those vehicles. However, if no other vehicles are available to work on, then
Integrated Waste Management agrees that FSD will charge mechanic hours to
the Integrated Waste Management account.
Road Call Service. FSD will provide roadside services for vehicles that are
broken down. The decision to dispatch a field mechanic will be based on FSD's
estimate of the severity of the repair problem and the level of effort required to
get the vehicle back in service. In general, FSD will provide roadside service
when repairs can be clearly diagnosed over the phone or radio and can be
handled within an hour of the call. More complex and time consuming repair
problems are more cost-effectively handled by towing the vehicle.
Vendor Services. In addition to regular repair services, FSD also will coordinate
contract repair services for Integrated Waste Management. The decision to use
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an outside vendor will be based on shop workload and services that require
special tools, equipment or expertise. Roadside tire services and towing services
are also available through contracts managed by FSD. If necessary, Integrated
Waste Management drivers will transport vehicles to vendors for warranty
repairs and other services in order to expedite the repair process. FSD
must first authorize taking any vehicles to an outside vendor.
Time Promised. FSD will provide Integrated Waste Management with a cost and
turnaround time estimate for all repairs. If conditions change during the repair
process, then FSD will provide the Integrated Waste Management fleet
coordinator with updated cost and turnaround time as required. FSD will
complete repairs on Integrated Waste Management vehicles as quickly as
possible. Our goal will be to complete repairs on 70% of Integrated Waste
Management vehicles in one day or less and 90% in one to three days. Only
10% of repair incidents involving Integrated Waste Management vehicles should
take more than three days to complete. Estimated turnaround times will be
calculated after problem diagnosis has occurred and in cases of exceeding repair
limits, Integrated Waste Management must give FSD repair authorization. This
turnaround time standard will not apply to vehicles requiring repair due to
accidents, vandalism, driver responsible incidents, defects covered by
manufacturer warranty, or acts of God.
Fleet Availability and Vehicle Downtime. Every effort will be made to limit vehicle
downtime. Vehicles are considered out of service when they are not available
during Integrated Waste Management's normal work schedule. Vehicles
requiring repair due to accidents, vandalism, driver responsible incidents, defects
covered by manufacturer warranty, or acts of God shall not be included in
downtime calculations. However, each vehicle will still get priority attention for
reducing downtime. The following benchmarks will apply to Integrated Waste
Management's fleet. Seasonal work is subject to altered schedules
• Light vehicles will have a 95% availability rate. Downtime will be applied
when vehicles are not available between the hours of 7:00am and 5:00pm,
Monday through Friday including holiday schedules
• Automated side loading refuse trucks will have a 88% availability rate.
Downtime will be applied when vehicles are not available between the
hours of 6:00 am and 4:00pm, Monday through Thursday including holiday
schedules
• Front-loading trucks will have a 88% availability rate. Downtime will be
applied when vehicles are not available between the hours of 6:00 am and
2:00pm, Monday through Friday including holiday schedules
• Commercial roil-off trucks will have a 92% availability rate. Downtime
will be applied when vehicles are not available between the hours of
6:00am and 2:00pm, Monday through Friday excluding holidays
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No Routes Standing. It is FSUs goal to have a sufficient number of front-loading
and rear-loading trucks available each morning so that Integrated Waste
Management has no routes standing. The number of trucks required to meet this
goal varies by program and by the number of backup units available. If a route is
standing, then FSD agrees to rebate Integrated Waste Management at the rate
of $100 per hour for each hour that there are not a sufficient number of trucks
available to cover all routes. Integrated Waste Management agrees that a route
will not be considered standing if there are backup trucks available, even if the
backup available is assigned to another team or program. For example, if a
spare mixed trash rear loader is available to the yard waste program, then a
route will not be considered to be standing even if there are not enough yard
waste rear loaders available. Additionally, Integrated Waste Management
agrees to not park spares requiring repair in the ready lot. All spares requiring
repair must be brought to the shop so that the Shop Manager and Route
Managers can plan truck availability and route coverage. If a spare truck
requiring repair has been parked in the ready lot, then the impacted route will not
be considered to be standing.
Repair Authorization. The same conditions for repair authorizations as described
above under the PM program section of this agreement will also apply to general
vehicle repairs.
Repair Warranties. FSD will provide the following repair warranties:
• General repair work will be warranted for 90 days or 4,000 miles for
defective parts or workmanship.
• Parts that have warranty coverage for longer periods will be recouped for
Integrated Waste Management.
• Vendor repairs that fail within their warranty period will be recouped for
Integrated Waste Management.
• Manufacturer warranties will be recouped for Integrated Waste
Management.
3. Equipment repair services
FSD has extensive experience in the maintenance and repair of a wide variety of
construction equipment and specialized equipment such as chain saws, weed
trimmers, mowers trailers, aerial devices, blowers, generators and cement
mixers. Integrated Waste Management will be provided a full range of equipment
maintenance and repair services. Billing for services of equipment outside the
contract "with purchase value of less than $500" will be on a time and material
basis for equipment, at the rates detailed in the "Service Prices and Billing
Procedures" section of this agreement.
4. Equipment Modification
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FSD will pre-approve all equipment modifications prior to their installation.
Departments will submit in writing the type of modification and it's purpose. This will
become a part of the equipment's permanent folder. FSD will be responsible for
making sure the modifications are completed. The modifications are considered
non-target work and requesting department will be charged accordingly.
5. Accident Repair Services
FSD assigns a local body shop to pickup, repair and return damaged vehicles.
FSD will directly bill these charges in our monthly billings to Integrated Waste
Management. FSD will send all trucks to vendors for repair of accident damage.
FSD will not begin the repair process for vehicles that have been involved in an
accident until knowledge of the accident is confirmed by Risk Management.
Integrated Waste Management is responsible for promptly notifying Risk
Management of accident incidents and completing an Accident Report.
6. Equipment Management Information System (EMIS)
FSD has a new computer system to manage vehicle maintenance operations.
This system will provide equipment life cycle cost information, shop productivity
VJGtIa, preventive maintenance schedUlln^ warranty Oracki.nn�, anvil other
:f y
operational information. FSD will use this system to manage maintenance
operations for each department. A variety of reports are available from the
system to help Integrated Waste Management analyze vehicle costs. FSD will
provide the following standard reports on a monthly basis:
• Consolidated billing report by cost center
• Ranking of trucks by monthly cost
Copies of work orders are also available for the customers. The new EMIS system
will also allow FSD customers to have real-time query capabilities to access the
current maintenance/repair status of their vehicles.
7. Equipment Replacement
FSD is responsible for preparing replacement recommendations for most
vehicles in the City's fleet including vehicles assigned to Integrated Waste
Management. Replacement recommendations are prioritized according to a
formula that considers vehicle age, life usage, life costs and a condition review.
Recommendations are made to Budget and Evaluation who, along with the City
Manager's office, determines a final funding level based on the availability of
capital funds. Integrated Waste Management will be consulted before
recommendations for replacement vehicles are forwarded to Budget and
Evaluation. FSD will work with Integrated Waste Management liaison to
prepares specifications for new and replacement vehicles and Purchasing to
coordinate acquisitions from equipment vendors. FSD and the Integrated Waste
Management Superintendent will have final review of all specifications. New
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vehicles will be prepared for service within one week of meeting final
specification review. FSD will strive to purchase vehicles with all necessary
equipment already installed in order to expedite delivery to customers. FSD will
be responsible for preparing Integrated Waste Management's vehicles for service
including installation of decals and other equipment as described below.
8. Radios, Safety Devices and Light Bars
Installation of radios is performed by a vendor partnering with the FSD. FSD will
be responsible for arranging equipment installation in new trucks or removal from
surplus vehicles. Integrated Waste Management will make arrangements when
ordering radios for existing trucks. FSD will be responsible for installing strobe
lights, rotating lights, backup alarms and other such equipment when not
included in the initial equipment specifications.
9. Loaner Cars
FSD maintains an inventory of vehicles that are available for short term loan to
replace vehicles under repair, and for out of town trips. Departments are
responsible for any accident or other damage to loaner vehicles while they are in
their possession. Departments wishing to reserve loaner cars should contact
FSD at 727-2507.
10. Directed Work / Special Projects
FSD is available to provide special project work at the direction of Integrated
Waste Management. Special projects may include new equipment installation
design, custom reports, driver training, and other projects. Billing for these
projects will be at our standard hourly rate in effect at the time that services are
rendered. If priorities for special projects are such that normal activities will be
impacted and production goals effected (e.g. downtime, turnaround time, PM
compliance), then Integrated Waste Management agrees to waive production
goal attainment for the duration of the special project.
INTEGRATED WASTE MANAGEMENT DRIVER/OPERATOR RESPONSIBILITIES
Refuse trucks are complicated machines that are operated in an adverse environment.
Drivers of these units are an important part of the maintenance process and a first line
of defense against vehicle breakdowns. At a minimum, all drivers will do a daily visual
inspection of their vehicle's condition. Integrated Waste Management CDL drivers will
have the following daily responsibilities:
• Drivers will perform a daily pre-trip inspection of their trucks before operation as
required by the Federal Commercial Driver License regulations. This inspection
will include a check of fluid levels, brake function and adjustment, air pressure
and tire condition. Also other items such as equipment functions, packing
systems, and knuckle boom operation. All problem areas will be brought to the
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attention of the appropriate supervisor. Vehicles with safety related defects (e.g.
brakes, lights, mirrors, etc) must not be operated.
• Drivers will limit engine idling to a short warm-up period at start of shift and cool
down at end of shift. In general, this period should not exceed five minutes (15
minute warm-up in cold weather conditions). At all other times, trucks should be
turned off when not in use. Excessive idling wastes fuel and causes engine
deposit build-up.
• Integrated Waste Management drivers will clean debris from behind the packing
system blade on a daily basis. Debris build-up can cause damage to both the
packing system and hydraulic components.
• Integrated Waste Management employees will report problems discovered during
daily operations promptly at the end of shift so that remedial repairs can be made
at night and not impact daily operations.
• If necessary Integrated Waste Management drivers will transport vehicles to
vendors for warranty repairs and other services in order to expedite the repair
process. FSD must first be contacted prior to taking a vehicle to an outside
vendor. Drivers will make every effaft to park their collection vehicles empty.
• Whenever possible, Integrated Waste Management drivers will dump their
collection vehicle before bringing it to the shop for service.
• Integrated Waste Management drivers will wash their front loaders every day and
rearloaders and scow trucks weekly (unless the vehicle wash facility is not in
operation). Scow trucks during leaf season will be washed as necessary.
ACCESSING FSD'S SERVICES
The overall coordinator of this agreement and the main point of contact between FSD
and Integrated Waste Management will be Larry Anderson, Fleet Maintenance
Manager. Day-to-day activities will be managed by the shop managers in charge of
FSD's repair facilities. Sandy Barfoot, General Services Director, is ultimately
accountable for Integrated Waste Management's satisfaction and will be responsible for
problem resolution, agreement amendments and quality control. FSD's principals can
be reached at the following numbers:
Appointments are strongly recommended in order to minimize vehicle downtime.
SERVICE PRICES AND BILLING PROCEDURES
Most repair services will be on a time and material basis. For the Fiscal Year ending on
June 30, 2000, FSD's labor rate for all customers was $ per hour. This rate will be
adjusted on July 1, 2010 to meet the requirements of the operating agreement with the
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
City. Parts will be billed on the basis of FSD's agreement in order to cover inventory
carrying costs and the professional services of our parts staff. Vendor services will be
billed according to the agreement in order to cover contract administration, invoicing
and coordination costs. Prices will be updated on an annual basis and Integrated Waste
Management will be notified of price changes during the budget preparation process.
Price changes will be effective July 1 of each fiscal year.
Time standards are established for common repair procedures based on industry
references such as Chiltons labor guide and manufacturer labor times. Any procedures
that take more time then the "standard" time will be judged on an individual basis and
charged appropriately. Infrequent or unusual repair procedures will not be subject to
time standards. FSD will absorb any additional time required by mechanics to complete
"standard" repair procedures. Loaner cars are available for a set cost per mile. There
will normally be a five day limit on loaner vehicles.
Invoicing will be on a monthly basis with consolidated statements summarizing activity
for all Integrated Waste Management vehicles. Individual work orders will be available
on request.
FSD'S AND INTEGRATED WASTE MANAGEMENT'S RESPONSIBILITIES
FSD will have the following responsibilities under this agreement:
A. To recognize that Integrated Waste Management is our customer and so has
certain rights including:
• The right to complain;
• The right to question cost;
• The right to demand fast service;
• The right to demand quality service;
• The right to shop around to compare cost and/or service; and
• The right to expect courtesy and consideration.
B. To comply with all provisions of this agreement.
C. To have Integrated Waste Management's best interests in mind.
D. To assist Integrated Waste Management in reducing their transportation costs.
Integrated Waste Management will have the following responsibilities under this
agreement:
• To designate a fleet liaison;
• To report vehicle malfunctions promptly;
• To honor appointments for preventive maintenance services;
• If rescheduling is necessary, to do so at least 24 hours in advance;
• To provide repair authorizations as soon as possible after being contacted.
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Management Study of the Integrated Waste Management Division
• To insure that Integrated Waste Management employees make daily inspections
of their vehicles before use and check fluids and tire pressure at each fueling;
and
• To review billing reports within five business days of receipt and to promptly
notify FSD of any problems.
Failure to keep scheduled preventive maintenance appointments will result in the
following:
1. The front-line supervisor will be notified after the first missed appointment. The
department will be responsible for contacting Fleet Services to reschedule the
maintenance.
2. The department head will be notified after the second missed appointment. The
department will be charged for one (1) hour of labor.
3. The department head will be notified after the third missed appointment. The
department will be charged for an additional hour of labor and the gas key will be
cut off.
ADMINISTRATION
This writing is intended both as the final expression of the agreement between the
parties hereto with respect to the included terms, and as a complete and conclusive
statement of the terms of the agreement. No modification of this agreement shall be
effective unless such modification is evidenced by a writing signed by both parties.
The process for modifying this agreement will be for the party requesting the
modification to initiate a change order letter detailing the requested change, the reason
for the requested change and it's financial impact.
Neither party shall assign or transfer any interest in or duty under this agreement
without the written consent of the other, and no assignment shall be of any force or
effect whatsoever unless and until the other party shall have so consented in writing.
Either party may cancel this agreement for any reason with 30 days written notice to the
other party.
This agreement shall be effective on the date both parties have signed the agreement
and shall extend until June 30, 2001. This agreement shall automatically renew for each
subsequent fiscal year unless terminated or changed by the parties pursuant to the
provisions of this agreement.
Approved: IWM Division Approved: Fleet Services Division
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
By: By:
IWM Operations Manager Fleet Services Manager
Dated: Dated:
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I
CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
APPENDIX 2
Performance Measure Description
Average Fleet Age The age and accumulated use of a fleet has a great
impact on the cost and performance of fleet
operations. As such, relative fleet age should be
tracked over time in parallel to key performance
measures in order to track trends and to document
the impact of lower or higher capital spending
levels.
Fleet Operating Rates including: Properly constructed operating rates provide a
Hourly Labor Rate strong indication of cost competitiveness, and an
Parts Markup ongoing mechanism of comparison with alternate
Fuel Markup Per Gallon and peer service providers.
Sublet Markup
Number of Vehicle Equivalents Per Technician A measure of staffing reasonableness and
adequacy. In a fleet of reasonable age and
condition, each FTE technician should be able to
support a benchmark number of vehicle
equivalents.
Technician Utilization A measure of maintenance program productivity,
(Billable Labor Hours) this measures the average annual number of hours
billed to work orders by each FTE technician. Low
utilization indicates possible over-staffing and/or
inefficient work processes.
Overtime Rate A measure of staffing efficiency and effectiveness.
A benchmark level of utilization coupled with
reasonable overtime levels indicates an optimally
staffed operation. Low productivity and high
overtime indicates serious staffing imbalances.
High productivity and high overtime indicates
probable staffing shortages
PM Program Compliance Rate This measures the number of PM's performed
within schedule.A low compliance rate indicates
that PM's are not being performed regularly. A high
PM compliance rate is a basic building block for an
effective maintenance and repair program.
Scheduled Repair Rate Measures the portion of all repairs identified and
conducted in a controlled, planned manner. The
combined purpose of the PM program, operator
inspections, and service writing is to identify and
take care of problems in a planned,scheduled
manner so vehicles do not suffer unscheduled and
costly breakdowns.
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CITY OF SAN BERNARDINO, CALIFORNIA
Management Study of the Integrated Waste Management Division
Performance Measure Description
Road Call Rate This measures the percentage of all repairs
conducted on vehicles that breakdown in the field
and cannot be driven to the shop. In combination
with the scheduled service rate, it provides an
indication of PM and overall maintenance program
effectiveness.
Comeback Rate This measures the percentage of time a customer
returns a vehicle or piece of equipment to the shop
for the same problem within a specified period of
time. It is a measure of service quality that reflects
the accuracy of service writing and diagnostic
activities as well as repair quality.
Fleet Availability Rates This is one of the key measures of success in a
fleet management program; the degree to which
the fleet service provider is able to ensure the
regular availability of fleet units to their user
departments.Availability rates should be highest
for mission critical vehicles and should be
calculated to reflect the work schedule of each
vehicle.
Repair Turnaround Time Services completed in one work day—80%of all
repair orders
Services completed in three days—90% of all
repair orders
Matrix Consulting Group Page 173
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